MNI: UK Jan Consumer Confidence Joint-Highest Since May: GfK

-UK Jan GfK Consumer Conf Index -9 Vs -13 Dec

     LONDON (MNI) - UK consumer confidence started 2018 on a slightly more

encouraging note, delivering the joint-best outturn in eight months, a survey by

GfK found.

     The GfK Consumer Confidence Index (CCI) rose four points to -9 in January

from -13 in December, the joint-best outturn since May 2017. The CCI had

previously hit the -9 result in September, before registering three consecutive

declines. 

     The CCI has trended down since the summer of 2015 when the index stood at

+7, culminating in a local low of -13 in December 2017. While the four-point

rise was the biggest upward monthly change since September 2016, the fact that

the index has sat beneath the neutral zero-mark for three months shy of two

years means one should not read to much into this month's result.    

     "At -9, the Index is still lower than this time last year (-5), and still

in negative territory, and in the absence of good news about rising wages and

declining inflationary pressures, this off-trend number could be a temporary

blip rather than a strong sign of recovery," Joe Staton, Head of Market Dynamics

at GfK, said. 

     Leading the result in January was a more optimistic outlook on households'

personal finances over the next 12 months, with that measure at +6, up from +2

in December. The index for the general economic situation over the next 12

months also rose by 4 points, but remained deep in negative territory at -24.

     The Major Purchases Index, an indicator of consumers' propensity to buy big

ticket items in coming months, climbed 5 points higher to +1 in November from -4

in December. 

     However, the savings index rose by six points to +10 suggesting consumers

remain unconvinced their economic fortunes have turned a corner, reluctant to

loosen the purse strings so soon after Christmas. 

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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