GfK's closely watched consumer confidence index rose for the second consecutive month in December, suggesting households could be inclined to splash out more this Christmas.
The consumer confidence index, a measure of how people view their personal finances and broader economic prospects, rose two points to minus 22, its highest level since September and the second-highest since January 2022.
“Despite the severe cost of living crisis still impacting most households, this slow but persistent movement towards positive territory for the personal finance measure looking ahead is an encouraging sign for the year to come,” said Joe Staton, client strategy director at GfK.
The data showed that confidence was also sharply higher from minus 42 in December 2022.
For the year ahead, expectations of their personal financial situation rose one point to minus 2 in December, up strongly from minus 29 in December 2022.
Staton said the recovery in that sub-index is encouraging because it indicates household “financial optimism and control over personal budgets”.