United Kingdom: Consumer confidence edges up in January

The GfK NOP consumer confidence indicator inched up from minus 7 points in December to minus 5 points in January, although the index remains entrenched in negative territory, where it has been since April of last year, highlighting that consumers are still broadly pessimistic.

January’s rise reflects an improvement in consumers’ personal financial situations over the last 12 months and for the coming year, as well as an amelioration in the general economic situation over the last 12 months. In contrast, consumers’ perceptions of the general economic situation over the next 12 months remained constant, while their likelihood of making major purchases dipped relative to December.

FocusEconomics Consensus Forecast panelists expect private consumption to expand 1.5% in 2017, which is unchanged over last month’s estimate. For 2018, the panel sees private consumption expanding 1.0%.