UK Consumer Confidence Rises Slightly in December, but Underlying Expectations for 2026 Remain Fragile
GfK data shows modest improvement in UK household sentiment ahead of Christmas, yet broader economic worries persist and temper optimism for next year
UK consumer confidence edged higher in December 2025, with the GfK Consumer Confidence Index climbing two points to -17 from -19 in November, marking a marginal improvement that coincided with the festive season and easing inflation pressures.
The increase, driven by gains across all five sub-measures of the survey — including personal finances and willingness to make major purchases — represents the joint strongest reading of the year, matching levels seen in August and October.
Despite the rise, overall sentiment remains negative and subdued against a backdrop of continuing cost-of-living challenges and broader economic uncertainty.
The December uplift offers mixed signals about households’ outlook as the UK transitions into 2026. While some indicators — such as the major purchase index — suggest a modest willingness among consumers to spend on larger items, the general economic outlook remains pessimistic, with expectations for the wider economy still well below neutral territory.
Analysts note that the headline gain may, in part, reflect relief that the autumn budget’s impact was not as severe as feared, and that stabilising inflation and recent Bank of England interest rate cuts have slightly eased financial pressures.
However, longstanding headwinds including persistent uncertainty over jobs, wages and real incomes continue to weigh on confidence.
Looking beyond the headline figure, deeper measures of forward-looking sentiment point to caution about 2026. Despite the headline index improving, the overall score for the year has barely shifted compared with December 2024, indicating that consumer optimism over the long term has yet to solidify.
Households are still navigating cost-of-living pressures, and rising economic uncertainty could restrain spending and dampen momentum in the months ahead.
The UK’s consumer landscape remains fragile, and while the modest December rise provides a gentle festive boost to morale, it conceals ongoing concerns that may dampen confidence and spending as the economy evolves in 2026.
The increase, driven by gains across all five sub-measures of the survey — including personal finances and willingness to make major purchases — represents the joint strongest reading of the year, matching levels seen in August and October.
Despite the rise, overall sentiment remains negative and subdued against a backdrop of continuing cost-of-living challenges and broader economic uncertainty.
The December uplift offers mixed signals about households’ outlook as the UK transitions into 2026. While some indicators — such as the major purchase index — suggest a modest willingness among consumers to spend on larger items, the general economic outlook remains pessimistic, with expectations for the wider economy still well below neutral territory.
Analysts note that the headline gain may, in part, reflect relief that the autumn budget’s impact was not as severe as feared, and that stabilising inflation and recent Bank of England interest rate cuts have slightly eased financial pressures.
However, longstanding headwinds including persistent uncertainty over jobs, wages and real incomes continue to weigh on confidence.
Looking beyond the headline figure, deeper measures of forward-looking sentiment point to caution about 2026. Despite the headline index improving, the overall score for the year has barely shifted compared with December 2024, indicating that consumer optimism over the long term has yet to solidify.
Households are still navigating cost-of-living pressures, and rising economic uncertainty could restrain spending and dampen momentum in the months ahead.
The UK’s consumer landscape remains fragile, and while the modest December rise provides a gentle festive boost to morale, it conceals ongoing concerns that may dampen confidence and spending as the economy evolves in 2026.
