United Kingdom: Consumer sentiment reaches over one-year high in January
January 31, 2020
The GfK consumer confidence indicator registered minus 9 in January, up from December’s minus 11 and marking an over one-year high. The uptick was likely linked to greater political certainty following the general elections. However, the index remained in negative territory, where it has been since April 2016, highlighting that consumers are broadly pessimistic.
Consumers grew more upbeat about the general economic situation and their future personal financial situation. However, consumers became less willing to make major purchases. Improving consumer confidence bodes well for private consumption in the first quarter.
According to Joe Staton, client strategy director at GfK: "If current trends continue, we’d expect a return to positive headline scores soon.”
Author: Oliver Reynolds, Economist