UK consumer confidence rose three points to -18 in November in the aftermath of the first Labour budget in 14 years and the US presidential election.
According to GfK’s long-running consumer confidence index, all five measures were up compared with last month’s announcement.
The survey was conducted among a sample of 2001 individuals between 30 October and 15 November.
The index measuring changes in personal finances during the last year rose one point to -9, up seven points compared to November 2023. Meanwhile, the forecast for personal finances over the next 12 months was up one point at -1, which was two points higher than this time last year.
The measure for the general economic situation of the country also climbed three points at -39, rising 10 points versus a year ago. Expectations for the general economic situation over the next year was two points at -26; this is the same as November 2023.
The major purchase index is up five points to -16, which is eight points higher than this month last year. The savings index decreased three points to +24, which is five points lower than this time last year.
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Neil Bellamy, consumer insights director, GfK, said: “There was evidence of nervousness in recent months as consumers contemplated the potentially worrying impact of the UK budget at home, and even the implications of the US presidential election. But we have moved past those events now.
“The biggest change this month is in major purchase intentions, an important measure that has jumped five points from -16 to -21 in the run-up to Black Friday next week. The other four measures, covering personal financial expectations and the wider economy, have registered small increases too.
“But while 2025 is just around the corner and the New Year often brings optimism, it’s too early to expect significant further improvements in the consumer mood. As recent data shows, inflation has yet to be tamed, people are still feeling acute cost-of-living pressures, and it will take time for the UK’s new government to deliver on its promise of ‘change’.”
Meanwhile, Linda Ellett, UK head of consumer, retail and leisure for KPMG, said: “Consumer confidence continues to be variable but ability to spend depends on household circumstance. Inflation, interest rates having not yet sufficiently fallen, and a toughening labour market, are all weighing on the minds of many people.
“Early indications are positive on the impact the Black Friday and Cyber Monday period could have but how this month proceeds is the first test of consumer spending appetite following the Budget. Retailers will be hoping for a release of pent-up spending demand, including on Christmas gifts, as we head into the golden quarter for the sector. However the prospect of heightened employment costs post-Budget is likely to take the shine off any spending uptick for retailers.”
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