Consumer confidence improved marginally in December but remained below -40 for the eighth month in a row, the first time this has happened since GfK began its records nearly 50 years ago.
The Index increased a meagre two points this month to -42, with three of the measures up, one down, and the other unchanged in comparison to the previous reading.
Joe Staton, Client Strategy Director at GfK, warned of a tough road ahead. “Real wages are falling as inflation continues to bite hard, further straining the discretionary budget of many households as we enter the last few shopping days before Christmas,” he said
“The outlook for our personal financial situation over the next 12 months – perhaps the key metric as we enter a new year – is stuck at -29. And concerns about our economic future remain acute. As we enter the festive season, the Overall Index Score is still depressed and, with scant seasonal joy at present and no immediate prospect of fiscal good news, it is unlikely we will see a rebound in confidence anytime soon.”
NAM Implications:
- What does it take to convince us that consumers are too afraid to think for themselves?
- And are distrustful of what they are told…
- Thereby ‘hunkering down’ becomes one of the few options.
- Now, please re-read the GFK chart with that in mind…
- (and perhaps view Christmas as a last hurrah for some/many?)
