Consumer confidence across the UK edged higher this month but remanied “far from strong” ahead of the key Christmas period for companies.
Gfk reported on Friday that its consumer confidence indicator moved to -17 this month in a one-point rise from November.
Outlook for the UK economy over the coming year remained unchanged at -26, while sentiment around personal finances improved.
“Consumer confidence is still far from strong, but there is some room for optimism,” Gfk consumer insights director Neil Bellamy said.
“We need to see robust improvements in these perceptions before we can start talking about sustained improvements in the consumer mood.”
Pantheon Macro analysts noted “confidence continues to recover from the sharp fall between August and October, just prior to the passing of the chancellor’s Budget”.
The clawback had “been muted when considering that households have had some good news”, Pantheon continued, citing minimum wage increases and an interest rate cut.
“But, households have also had to deal with a beating drum of downbeat business sentiment that warns of tax-induced job cuts, rising [...] inflation, and the threat of a global trade war.
“So we think consumers’ confidence is actually holding up quite well in the face of these worries.”