Positive Start to Year for UK Consumers

UK consumer confidence took a sharp upturn in January, according to the latest index figures from GfK Martin Hamblin, working on behalf of the European Commission. Whilst a rise in January is normal, the headline figure at +1 is the highest for more than two years.

The headline index is up four points from December - in the black for the first time since November 2002 (+2), just prior to the Iraq war. The increase vs December is driven primarily by the change in the 'climate for major purchases' measure which has increased by ten points to +18, the highest measure seen since last January when it was +22. Other ratings are higher than their January 2004 equivalents.

Consumers were more positive about the development of their personal finances over the last twelve months (up 3 to +1), and about their future (up 4 to +12). Both of these measures are higher than for the same period in 2004.

Perceptions of the general economic situation in the country over the last twelve months also improved (up 4 to -16 and six points higher than in January 2004) while expectations for the next twelve months have remained the same in January as December (-10).

The perception of whether now is a good time to save has increased by four points to +25, the highest this measure has been for four years (+25 January 2001).

Director Reza Chady points out that a January increase in the consumer confidence headline is normal, given New Year optimism and the effect of January sales in the High Street on the purchase climate.

The UK Consumer Confidence Survey from GfK Martin Hamblin was conducted amongst a sample of 2008 individuals aged 16+ - this wave took place from 5th - 24th January.

GfK Martin Hamblin's web site is at www.gfkmh.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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