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Published
Dec 18, 2020
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​At last! Covid vaccine optimism sends December UK consumer confidence a-leaping

Published
Dec 18, 2020

A “brighter outlook” is a phrase not seen this year on many fronts, particularly when it comes to UK consumer confidence. So UK retailers can prepare for some much-needed good news.


Good news lifts December consumer confidence


GfK’s long-running consumer confidence index actually rose seven points in December. And yes, it’s mostly linked to positive news surrounding Covid-19 vaccines, even though consumer confidence still has a reading of -26.

Adding to the good news was the fact that all the index’s five measures also increased this time month-on-month.

Topping that list was expectations for the general economic situation over the coming 12 months leaping 15 points, albeit still eight points lower than December 2019.

“We have not registered a change of that magnitude for that measure since April/May 2011”, noted GfK’s Client Strategy director Joe Staton.

Also good news for retailers was a six-point rise in the Major Purchase Index (to -22) in December, although it was still 25 points lower than last December.

Staton added: Renewed expectations on personal finances looking ahead are also welcome, while the six-point uptick in the Major Purchase Index is good news for online and offline retailers.

Important too, the forecast for personal finances over the next 12 months rose eight points this month to +3, mirroring December 2019 when the global pandemic had yet to happen.

Meanwhile, the index measuring changes in personal finances over the last 12 months lifted seven points to -9, although that too remains six points lower than last December.

Elsewhere, the measure for the general economic situation of the country during the last 12 months inched up two points at -65, still 34 points lower than 12 months ago. Finally, the Savings Index jumped six points to +17 in December, only one point lower than this time last year.

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