Consumer confidence in the UK rose in December, contrary to forecasts

22.12.2015

In December, the consumer confidence index rose 1 point compared to the previous month and reached 2 points, according to a survey of GfK NOP Ltd Research Company. The index rose for the first time in four months, while analysts polled by Bloomberg, expected to maintain its value at the November level.

GfK consumer confidence index in the UK remained above zero during the whole 2015 year for the first time since 1974, when this indicator was put into circulation.

Thus, British consumers assess this year the most positive in all four decades of data collection.

Reducing unemployment and the fact that wage growth in the UK is ahead of inflation, significantly improved consumer sentiment.

In August, the confidence index rose to a maximum of more than 15 years.

Four of the five components of the confidence index improved in the current month compared to November.

However, the sub-index of assessment by consumers of the general economic situation in the country in the coming year remained in December at minus 6 points.

The indicator that shows assessment of the economic situation over the past 12 months, increased this month from -6 points to -5 points.

Indicator of assessment by British of personal financial situation over the past 12 months rose from 1 point to 3 points.

At the same time, indicator of the personal financial situation for the next year rose in December by 3 points, to 9 points.

Sub-index that assesses consumers' willingness to spend money on major purchases, fell this month to 7 points from 9 points in November.

The study GfK, conducted from 1 to 14 December at the request of the European Commission, was attended by over 2000 British older than 16 years.

The minimum level of consumer confidence index, which is calculated from 1974, was recorded in July 2008: minus 39 points. The average figure is minus 9 points.

In Europe, the consumer confidence index in the Eurozone for the past month fell less than expected. This is evidenced by industry statistics released on Monday. According to the report prepared by the European Commission, this figure (annualized) was -5.7 compared to -6.0 in the previous month.

Experts expected to decline to -5.9.

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