20 July 2024, 14:41
By Furniture News Jan 20, 2023

Consumer confidence drops in January

GfK’s Consumer Confidence Index decreased three points in January to -45.

Four measures were down, and one was up, in comparison to the December 16th announcement. The major purchase index was down six points to -40, down 30 points YoY.

Joe Staton, client strategy director, GfK, says: “After a short-lived and weak rally in Q4 last year, UK consumer confidence has slipped to -45 in January. Consumers have a New Year hangover – but it’s of the economic kind – with high levels of pessimism over the state of the wider economy. And unlike a conventional hangover, this one won’t vanish quickly. The only glimmer of hope in the results is a slight uptick in the outlook for our personal financial situation, but this is of little comfort because it is still 25 points lower than this time last year.

"This month’s six-point decline in the major purchase index does not augur well, because consumer spending is a driving force of our economy and future growth. With inflation continuing to swallow up pay rises, and the prospect of some shocking energy bills landing soon, the forecast for consumer confidence this year is not looking good. One thing we can be sure of is that 2023 promises to be a bumpy ride.”

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