(Bloomberg) -- UK consumer confidence remained subdued in December with households reluctant to splash out on big-ticket items ahead of Christmas amid ongoing economic uncertainty, a survey found.
Research firm GfK’s sentiment indicator rose one point to minus 17, ending 2024 barely above the average for the year. Consumers declared themselves slightly more optimistic about their personal finances but stayed gloomy about the general economic outlook and no more willing to make major purchases.
“In December, consumers adopted the holding pattern we’ve seen for much of 2024,” said Neil Bellamy, consumer insights director at GfK. “It’s the continuing uncharitable view on the UK’s general economic situation that’s suppressing consumer confidence.”
The findings will come as a further blow to retailers and hospitality venues, which are bracing for challenging trading during their most crucial period of the year. While consumers escaped much of the £40 billion ($50.8 billion) of tax rises in Chancellor Rachel Reeves’ budget on Oct. 30, a worsening jobs market, higher energy bills and rising mortgage costs are weighing on sentiment.
Official figures due at 7 a.m. in London Friday are expected to show the economy posted an anemic rebound in October, growing just 0.1% after a 0.1% contraction in September.
GfK’s major purchases index remained at minus 16, suggesting households are still hesitant about buying things such as furniture and electronics. A gauge tracking the outlook for personal finances turned positive for the first time since August, while views of the general economic situation in the next year were unchanged at minus 26.
“We will need to see robust improvements in these perceptions of the economy before we can start talking about sustained improvements in the consumer mood,” Bellamy said.
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