Consumer confidence in the UK experienced a slight increase in January, reflecting household resilience rather than optimism about the broader economy. According to the latest figures from GfK, the Consumer Confidence Index rose by one point to minus 16. This marks a decade since the index was last in positive territory.
The data reveals a nuanced view of consumer sentiment. Confidence regarding personal finances for the upcoming year improved, rising four points to six, which is notably eight points higher compared to January of last year. Despite this personal optimism, expectations for the general economic situation over the next twelve months fell by two points to minus 31, although this remains three points above the figure from the same month last year.
The Major Purchase Index, which gauges confidence in making significant purchases, also saw an improvement, climbing one point to minus 10, a substantial increase of ten points year-on-year.
Insights from GfK
Neil Bellamy, consumer insights director at GfK, commented on the data, stating, “January 2026 brings an unwanted anniversary, marking ten years since consumer confidence was last in positive territory.” He emphasized that while the one-point increase in the overall confidence rating is a positive sign, it indicates a long way to go before consumers feel secure about their financial futures.
Bellamy pointed out that even though perceptions of personal finances are improving, they are counterbalanced by growing concerns about the economic landscape. He noted, “We’ve seen this pattern before. During periods of political and economic uncertainty – most notably in late 2022 – consumers became more cautious but also more self-reliant.”
Current trends suggest a return to this cautious mindset. Consumers are feeling more capable of managing their finances but remain hesitant regarding the larger economic outlook. “Let’s be clear, this isn’t optimism; it’s resilience,” Bellamy stated.
Future Outlook
The prevailing sentiment indicates that while consumers may believe they can control their own spending and saving, confidence in the wider economy continues to be low. Bellamy metaphorically described the UK economy as “an untethered boat drifting slowly out to sea,” highlighting the uncertainty that many consumers are currently experiencing.
As households navigate these challenges, the slight uptick in consumer confidence may represent a critical moment for future economic trends. Whether this resilience can translate into greater confidence in the economy at large remains to be seen, but for now, households appear to be focusing on what they can manage amidst ongoing uncertainty.
