Consumer confidence fell in January amid worries over inflation, fuel bills and interest rate rises, new research reveals.
GfK’s long-running Consumer Confidence Index decreased four points to -19 in January as all measures of confidence fell in comparison to December’s figures.
Joe Staton, Client Strategy Director at GfK, said: “The UK’s financial pulse weakened further this January driven by concerns over personal finances and the general economic situation. All five measures are down in January and the picture on the economy is especially bad with an eight-point decrease in how we see the past year and the year to come.
“Despite some good news about the easing of Covid restrictions, consumers are clearly bracing themselves for surging inflation, rising fuel bills and the prospect of interest rate rises. The four-point fall in the major purchase index certainly suggests people are ready to tighten their belts. Will the mood brighten when the latest wave of the pandemic subsides and Covid numbers improve? It seems unlikely because it’s the cost-of-living squeeze that’s worrying us now and this will affect us for months to come.”
The UK Consumer Confidence Barometer is conducted by GfK among a sample of 2,000 individuals aged 16+.
