UK consumer confidence improves in December - GfK

UK consumer confidence unexpectedly improved in December in the run-up to the general election, according to a survey released on Friday.

GfK’s consumer confidence rose to -11 from -14 in November, beating expectations for an unchanged reading. Four of the five confidence measures rose.

The index tracking people’s financial situation over the last 12 months fell to -3 in December from zero the month before, while the index tracking the situation over the next year rose to 3 from 1.

The gauge tracking the general economic situation over the last 12 months improved to -31 from -34 and the index for the general situation over the next year increased to -27 from -34. The major purchase index came in at 3 in December compared to 1 in November.

Joe Staton, client strategy director at GfK, said: "There’s a clear sense of a change in consumer sentiment this month. The picture for the year to come is much stronger with a two-point improvement in how consumers view their personal financial prospects and a very healthy seven-point jump on how they see the wider economy next year.

"We haven’t seen such a robust increase in confidence about our economic future since the summer of 2016. Despite official warning signs about the flatlining of Britain’s economy, we know that record high employment and below target levels of inflation are helping to boost consumers’ expectations for the year ahead. Importantly, for the retail sector, we also have an upwards revision in our major purchase index, a key figure during the remaining shopping days of 2019."