Slightly Merry Christmas for UK Consumers

UK consumer confidence improved only slightly in December, according to research carried out by Martin Hamblin GfK on behalf of the European Commission. The headline index figure is up 1 point to -5 from November, reflecting slightly more optimism about the general economic situation.

Consumers are also happier with their personal financial situation over the past 12 months, but still cautious about spending money on major purchases, even during the Christmas season.

Results for the individual questions are:

• Perceptions in the development of personal finances over the last twelve months have improved slightly to 0 from a recent low of -5 in October.
• Perceptions of the general economic situation in the country over the last 12 months and expectations for the next 12 months have both increased by 2 points from -24 to -22 and -18 to -16 respectively. Both these measures are higher than in the same period in 2002.
• Views of the climate for making major purchases have declined from +6 to +5 in December - 10 points lower than in December 2002.
• Following November's rise in interest rates consumers still consider it a good time to save, with only a slight drop from +11 to +10 in December. This compares to a level of -9 this time last year. Late 2003 levels on this question are the best since May 2001.

The survey was conducted amongst a representative sample of 2062 individuals aged 16+, between 27th November and 16th December 2003.