Consumer confidence rose three points to reach -18, having declined consecutively in the months since the July election. Bellamy said there was also evidence the outcome of the U.S. election was a concern going into the event, but sentiment has now settled somewhat.
PRE-CHRISTMAS BOOST
The biggest change in November’s survey came in major purchase intentions, providing a boost for retailers and the wider economy in the run-up to Christmas, according to Bellamy.
"The index jumped five points from -16 to -21 in the run-up to Black Friday next week," he said.
Other measures making up the broader overall index all registered small gains, with personal financial expectations -- closely watched by GfK as a forward indicator -- up one point at -1, two points higher than this time last year.
TOO EARLY
Still, it is too early to expect significant further improvements in consumers’ mood, "despite 2025 being just around the corner and the New Year often bringing optimism," Bellamy said.
"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.”
Data released on Wednesday showed inflation rose sharply in October, bouncing back above the Bank of England's 2% target, with some analysts expecting the headline rate to reach around 3% in spring 2025. (see MNI BRIEF: UK Inflation Picks Up Pace As Energy Costs Rise )
