GfK’s long-running Consumer Confidence Index increased by +4 points in January 2018, and saw increases in all five measures used to track public sentiment.
Joe Staton, head of market dynamics at GfK, says: “Having survived Christmas, New Year, the January Sales and Blue Monday, bullish Brits report a more upbeat view of their financial prospects for 2018 this month.
"From expectations for their personal financial situation to the outlook for the UK economy and major purchase index, we are reporting a rebound in levels of optimism across the board after two years of the overall index score sitting at 0 or in negative territory. However, standing at -9, the index is still lower than this time last year (-5), and still in negative territory, and in the absence of good news about rising wages and declining inflationary pressures, this off-trend number could be a temporary blip rather than a strong sign of recovery.
"With 2018 still in its infancy, and with a great deal of uncertainty in store, there could be more turbulence in the consumer mood this year and next. Watch this space.”
The largest increase occurred in the Major Purchase Index, the indicator of willingness to spend on big-ticket items such as furniture, which was up +5 points. However, it remained -9 points lower than in January 2017.