Following yesterday’s downbeat retail sales figures, there was slightly better news today with data suggesting that consumer confidence has improved in recent weeks and could continue to do so in 2020.
GfK’s Consumer Confidence Index increased three points to –11 for December, with four measures used to calculate the figure increasing, and one decreasing:
Joe Staton, Client Strategy Director at GfK, commented: “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 flat-lining 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.
“The Overall Index Score has failed to break into positive territory for the past four years due to confusion and uncertainty about the future direction of the UK. A great many people will be gazing into their crystal balls right now; ours indicates a rebound in confidence in 2020 based on renewed optimism and energy for a post-Brexit Britain.”
Retailers have been discounting heavily in recent weeks to shift stock after a slow start to the festive season. The sector is hoping that last week’s decisive election victory for the Conservatives will prompt shoppers to open their wallets in the final days of the Christmas shopping period.
