The GfK Consumer Confidence Index in the United Kingdom rose by one point to -17 in December 2024. This marks the second consecutive month of improvement, signaling a modest recovery in sentiment. However, the index remains firmly in negative territory, underlining persistent concerns about the country’s economic outlook. Despite the incremental gains, broader economic uncertainty continues to weigh heavily on consumer perceptions.

Positive Shift in Personal Finances

One bright spot in December’s data was the improvement in personal finance expectations. The index for personal finances turned positive, reaching +1, which is three points higher than the same time last year. This indicates that more consumers feel optimistic about their financial situations moving into 2025. However, this improvement has not yet translated into increased optimism about the wider economy, with confidence in the general economic outlook over the next 12 months remaining unchanged at -26.

General Economic Outlook: Stability Amid Doubts

While the personal finance outlook has improved, consumer confidence in the UK economy remains cautious. The general economic index is still one point lower than it was in December 2023, reflecting ongoing uncertainty about the future. This stagnation highlights the mixed feelings consumers have as they weigh individual financial improvements against broader economic challenges.

Big Purchases Hold Steady

The Major Purchase Index, a measure of confidence in making big-ticket purchases, also held steady at -16 in December. Encouragingly, this represents a 7-point improvement compared to December 2023, suggesting that some consumers feel more inclined to make significant purchases. Neil Bellamy, Consumer Insights Director at GfK, summarized the year by noting: “Overall, 2024 has seen some fluctuations in consumer confidence, but these have been far less pronounced compared to recent years.” This steadying trend may offer hope for continued recovery in 2025.