Top story
Consumer confidence has bounced back after recovering from pre-Budget jitters to hit a to a four-month high ahead of the festive period, according to a closely watched monthly survey.
GfK’s long-running Consumer Confidence Index increased by one point to -17 in December, following a three-point bump in November.
However, some uncertainty over the economic future remained.
Consumer insights director Neil Bellamy said consumers had adopted the holding pattern seen for much of 2024, with the one-point increase very close to the 2024 average of -18.
Consumer confidence was still far from strong, he added, but there was “some room for optimism” with views on personal finances over the next 12 months up two points versus November and creeping back into positive territory (at +1). This echoed the encouraging positive scores recorded in this measure from March to August.
However, with the major purchase measure unchanged at -16 in December, consumers still seem to be thinking twice about big-ticket purchases ahead of the crucial Christmas period.
Views on the economy are unchanged from November (-39 over the last 12 months; -26 for the next 12 months), which suggested people don’t know where we are going, Bellamy said.
“We will need to see robust improvements in these perceptions of the economy before we can start talking about sustained improvements in the consumer mood. In a nutshell, it’s the continuing uncharitable view on the UK’s general economic situation that’s suppressing consumer confidence.”
He added that overall 2024 had been “been another year of ups and downs in consumer confidence but much less so compared with recent years”.
In 2024, there was an eight-point difference between the highest and lowest score. In 2023, it was a difference of 23 points, and in 2022 it was 30 points.
“So volatility is down but will it stay that way?,” Bellamy said.
“Of all the major events in 2024, the UK general election was the most impactful, with initial post-election optimism giving way to a large seven-point fall in September as consumers were spooked by government messages about the state of the economy and difficult choices to be made.”
Morning update
English wine producer Chapel Down has appointed James Pennefather as chief executive, starting on 1 February.
Pennefather has worked in the premium drinks industry for more than 25 years and was most recently CEO of The Lakes Distillery Company, where he led the business’ sale to Nyetimber earlier this year.
“I am excited to be joining Chapel Down at such an important time in the company’s growth story,” he said.
CFO Rob Smith also resigned from the group and will leave following the publication of the full-year results in April.
A recruitment process will kick off soon, led by the new CEO.
No comments yet