GfK: Vaccine Not Yet A Jolt In The Arm For UK Consumer Confidence

GfK has published its latest Consumer Confidence Index, revealing a two-point decline for the month of January 2021. 

Joe Staton, GfK’s Client Strategy Director, says: “Despite the widespread anticipation of a ‘return to normal’ with the ramp-up of the vaccination programme, it is too early to deliver a jolt in the arm to UK consumer confidence.

"Our view of the general economic situation still makes for grim reading, especially expectations for the coming year, which shows a nine-point drop. This continues to suppress the overall index, which is further dampened by a weak major purchase score, as reflected in retail sales figures across the country.

"However, the key is how we all view our personal financial situation for the next 12 months. Confidence in this figure reflects our financial hopes and fears, as well as those of our families and loved ones, and it seems to be holding up. This is positive news because, amid widespread uncertainty over jobs and livelihoods, any decline in how we see our personal finances in the year to come would be a clear warning for the economic outlook.”

UK Consumer Confidence Measures – January 2021

The Overall Index Score decreased two points to -28 in January. Four measures decreased in comparison to the December 18th announcement and one measure increased.

Personal Financial Situation

The index measuring changes in personal finances over the last 12 months is up one point to -8; this is nine points lower than January 2020. 

The forecast for personal finances over the next 12 months is down one point this month at +2; this is four points lower than January 2020.

General Economic Situation

The measure for the general economic situation of the country during the last 12 months is down two points at -67; this is 39 points lower than in January 2020.  

Expectations for the general economic situation over the coming 12 months are down nine points; this is 20 points lower than January 2020.

Major Purchase Index

The Major Purchase Index has decreased by two points to -24 in January; this is 25 points lower than it was in January 2020.

Savings Index

The Savings Index has gone up by one point only to +18 in January; this is two points lower than this time last year.

Source : GfK

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