Consumer confidence rose again in the first half of December to -33 points but is still at near-record low levels, today’s GfK NOP index shows.
While confidence in the major purchase measure, including electrical goods, grew by ten points, people’s confidence in the overall economic prospects for next year dropped five points.
Compared with the same period last year, this section on the index has dipped by 15 points.
And optimism over saving cash has also dropped, as confidence in squirreling away money now has fallen by twelve points to -8.
Yesterday’s Office for National Statistics figures showed a shock rise in retail sales in November.
Rachael Joy, from GfK NOP’s consumer confidence team, said: “UK Consumers have become even less confident about the future economic situation but, among these historically low levels of confidence, there is perhaps a glimmer of hope.
“For the third month running, there has been an improvement in the number of consumers who think now is a good time to make a major purchase suggesting that high street deals and the small reduction in VAT have improved consumers views on this area.
“The crucial question for the economy is whether the improvement in this index will be translated into activity on the high street during the January sales.”
Earlier this week, the CBI’s set of statistics showed a bleaker picture. A balance of 49% of retailers said sales will be lower in the coming January than they were this year.
