According to Marketing Week, 2024 has been a challenging year for consumer confidence, but there are glimmers of hope. GfK’s Consumer Confidence Index reveals a slight improvement for the second consecutive month, with confidence rising by one point to -17. This marks a modest two-point increase since January 2024, when the index stood at -19.
“Consumer confidence is still far from strong, but there is some room for optimism,” says Neil Bellamy, consumer insights director at GfK.
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Despite the incremental gains, the overall sentiment remains cautious as the holiday season approaches.
Improvements in Personal Finances
Consumer confidence in personal finances has shown some improvement over the past month, rising by two points to -7.
This is a notable seven-point increase compared to December 2023. Furthermore, optimism about personal finances in the next 12 months has climbed to a positive figure of 1, up from -2 at the same time last year.
These figures indicate a growing sense of stability, albeit from a still-challenging baseline.
General Economic Perceptions Remain Static
Perceptions of the broader economic situation have not changed over the past month, with the figure remaining at -39 for the second consecutive month.
While this remains in negative territory, it is five points higher than in December 2023.
Expectations for economic improvement in the next 12 months also remain unchanged at -26, representing a slight one-point decline compared to last year.
Mixed Signals in Spending and Savings
The Major Purchase Index, which tracks consumers’ confidence in making significant purchases, remains unchanged at -16.
However, this is seven points higher than December 2023, reflecting a gradual but cautious recovery in spending confidence.
On the other hand, the Savings Index dropped by three points to 21, six points lower than this time last year, although it remains in positive territory.
A “Flat” Year for Consumer Confidence
“It’s been a flat year for consumer confidence in 2024,” Bellamy tells Marketing Week. “The headline score in January was -19, and the results for December have come in at -17.
Consumers were more than a little apprehensive just after the new government came into power, but we’ve made up all of the lost ground and are back to where we were in the spring.”
Bellamy highlighted Black Friday as a bright spot, with spending during the week hitting £992m—an impressive 110% above the average week in 2024.
This performance signals pockets of consumer optimism despite the broader flat trends.
Navigating Another “Flat” Year
The past year has been less volatile than 2023 or 2022, which Bellamy sees as a positive sign for marketers. He notes that the new UK government, now six months into its term, has plans to boost the economy. However, such plans take time to materialize, and in the interim, marketers will need to rely on their expertise to navigate another challenging year.
“Marketers can take some comfort in the reduced volatility,” Bellamy concludes. “But with confidence still far from strong, leveraging data-driven strategies and consumer insights will be critical in the months ahead.”