Consumer confidence is improving ahead of Black Friday, as per the GfK index.
- The Consumer Confidence Index has risen by three points to -18 in November.
- Personal finance perspectives over the past year have increased by one point to -9, marking a seven-point rise from 2023.
- Expectations for personal finances over the next year show a modest improvement, now just two points higher than last year.
- Major Purchase Index has jumped significantly by five points, reflecting improved consumer sentiment.
The latest data from GfK indicate a modest yet notable improvement in consumer confidence as the holiday shopping season approaches. The Consumer Confidence Index experienced an increase of three points, reaching -18 in November. This upward trend offers a cautiously optimistic outlook compared to previous months.
Personal finance sentiments have shown a favourable shift, with the index rising by one point to -9, which signifies a seven-point improvement from November 2023. Similarly, the forecast for personal finances over the coming 12 months has edged up by one point to -1, reflecting a slightly more positive financial outlook among consumers.
The general economic outlook for the past year has seen a rise of three points to -39, showing significant progress of 10 points compared to the same period last year. Meanwhile, expectations for the general economic situation for the next 12 months have increased by two points to -26, aligning with last year’s figures.
A noteworthy change has been observed in the Major Purchase Index, which has increased by five points to -16. This change, especially in light of the impending Black Friday, indicates an enhanced willingness among consumers to spend on significant purchases.
Neil Bellamy from GfK remarked on this positive development, highlighting the rise in major purchase intentions as a significant indicator of consumer confidence. However, he cautioned that while the New Year typically brings a sense of optimism, challenges such as persistent inflation and cost-of-living pressures remain prevalent, potentially tempering future confidence growth.
Overall, the current data presents a cautiously positive outlook on consumer confidence, albeit with some reservations about future challenges.
