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Consumer confidence has risen ahead of Christmas but remains weak due to cost-of-living pressures, new data shows.
GfK’s long-running consumer confidence index improved two points to minus 17 in December.
The research showed that all five measures of the survey increased for the month, bouncing back from a weak November that was hit by pre-Budget caution.
Neil Bellamy, consumer insights director at GfK, said: “It is fascinating to see the festive spirit driving December’s two-point improvement in consumer confidence.
“This is a surprising finding for the UK high street as it contrasts with the decline in Black Friday sales we reported earlier this month.”
Industry figures point to weakness on the high street ahead of Christmas, data revealed CBI This represents the sharpest decline in sentiment among retailers in 17 years.
GfK data showed a four-point improvement in its key purchasing index – an indicator of confidence in buying big-ticket items – from zero to 11.
Measures related to buyers’ views about the macroeconomic outlook also improved slightly for the month.
Mr Bellamy said: “Despite the recent moderation in inflation as well as increasing economic uncertainty, UK households are still facing cost-of-living pressures, and those conditions are resulting in weak consumer confidence.
“Sadly, consumers end up looking like a family on winter holidays crossing a boggy field – walking steadily, not getting stuck in the mud and hoping that easier conditions are not far off.”