UK Consumer Confidence Improves in December

In December 2025, the GfK Consumer Confidence Index for the UK climbed to -17, up from November's reading of -19, surpassing the anticipated forecast of -18. This shift suggests a slight improvement in consumer sentiment leading up to the Christmas season. Nonetheless, overall confidence remains low due to persistent cost-of-living challenges and widespread economic uncertainties. During December, all five dimensions of the survey experienced gains, recovering from the downturn seen in November, which had been influenced by pre-budget concerns. Notably, the major purchase index, an indicator of consumers' readiness to make significant purchases, increased by four points to -11. This points to a potential rise in holiday spending, likely showing stronger sales momentum compared to last month's Black Friday. However, GfK Consumer Insights Director Neil Bellamy warned that ongoing cost-of-living pressures, despite a recent decline in inflation, coupled with escalating economic uncertainty, are expected to limit consumer confidence levels.