Yougov: Consumer Confidence Was Ticking Up In December
Image by Gerd Altmann from Pixabay
2024 ended on a positive note for UK consumer confidence, according to the latest data from YouGov and the Centre for Economics and Business Research (CEBR). The overall index rose from 111.2 to 112.5 (+1.3) in December – the highest score since August 2021 (112.9).
Workers were more likely to report increased business activity over the past 30 days, with scores rising from 112.4 to 115.4 (+3.0) – perhaps reflecting a busy festive period. Their feelings about business activity over the next 12 months were also more optimistic, with scores rising from 125.4 to 126.9 (+1.5).
As for job security, feeling was a little more muted. Retrospective scores improved from 97.5 to 97.7 (+0.2), while people’s outlook going forwards increased from 112.9 to 114.3 (+1.4).
The public’s view on the future of their household finance measures jumped from 98.8 to 99.9 (+1.1) – taking this measure to the brink of net positivity.
At the end of December homeowners felt good about their property values over the past 30 days: scores improved from 116.3 to 119.2, an uptick of 2.9 points. Their forward-looking outlook saw a more modest gain, rising from 131.0 to 131.6 (+0.6).
The YouGov/Cebr Consumer Confidence Index ended 2024 on a high point, with consumers’ perceptions of business activity and home values being particularly strong. The first weeks of 2025 have brought considerable uncertainty, however, which could impact these metrics moving forward. The outlook for the economy is weakening, amidst expectations of continually high inflation and concern over the potential for further tax rises. Meanwhile, the recent turbulence in government debt markets could hinder any potential reduction in mortgage costs over the coming months, impacting household finances and property prices. Whether consumers can ride out this wave of uncertainty by continuing to express net positivity will be key to the economy’s performance this year.
Sam Miley, Managing Economist and Forecasting Lead at Cebr.