Consumer self-confidence boosted in November in the middle of indicators consumers prepare to place political turmoil behind them to invest once again on Black Friday and Christmas.
Growth from Knowledge’s (GfK) long-running customer self-confidence index increased by 3 factors this month, although it continues to be strongly in adverse area at minus 18.
The enhancement was driven by an enter purposes to make significant acquisitions– a sign of self-confidence in acquiring expensive products– by 5 indicate minus 16 in the run-up to Black Friday following week and 8 factors more than this time around in 2014.
Confidence in individual funds for the year in advance increased one indicate minus one– 2 factors more than this time around in 2014, while assumptions for the basic financial circumstance are up 2 factors yet stay at minus 26.
Neil Bellamy, GfK customer understandings supervisor, claimed: “There was evidence of nervousness in recent months as consumers contemplated the potentially worrying impact of the UK Budget at home and even the implications of the US presidential election.
“But we have moved past those events now.
“But while 2025 is just around the corner and the New Year often brings optimism, it’s too early to expect significant further improvements in the consumer mood.
“As recent data shows, inflation has yet to be tamed, people are still feeling acute cost-of-living pressures, and it will take time for the UK’s new government to deliver on its promise of ‘change’.”
Linda Ellett, UK head of customer, retail and recreation markets at KPMG, claimed: “Consumer confidence continues to be variable but ability to spend depends on household circumstance.
“Inflation, interest rates having not yet sufficiently fallen and a toughening labour market are all weighing on the minds of many people.
“Early indications are positive on the impact the Black Friday and Cyber Monday period could have but how this month proceeds is the first test of consumer spending appetite following the Budget.
“Retailers will be hoping for a release of pent-up spending demand, including on Christmas gifts, as we head into the golden quarter for the sector.”
