As evidenced by today’s disappointing retail sales figures, consumer confidence remains in a perilous position.
GfK’s Consumer Confidence Index decreased three points in January to -45. Four of the five measures used to calculate the figure were down, and one was up:
“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,” said Joe Staton, Client Strategy Director at GfK.
“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.”
He added: “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.”
Whilst some recent trading updates from leading retailers suggested that Christmas spending was relatively robust, official sector data released today shows cost-conscious shoppers made cutbacks to cope with rising inflation.
