UK Consumer Confidence Rises Slightly Amid Ongoing Economic Concerns

Consumer Confidence Trends in the UK

LONDON, Jan 23 (Reuters) - British consumers this month turned their most confident since August 2024 as households became more positive about their own finances, but concerns about the economy persisted, a survey showed on Friday.

Market research firm GfK said its consumer confidence index stood at -16 in January, up one point from December and the highest since August 2024. The reading was in line with a forecast in a Reuters poll of economists.

Britain's longest-running monthly survey of consumer morale was last in positive territory 10 years ago, GfK said, in the lead-up to Britain's vote to leave the European Union.

Key Findings from the GfK Survey

The monthly survey showed three out of five measures of confidence fell this month.

Economic Outlook and Consumer Sentiment

"Consumers are once again focusing on what they can control - their own spending and saving - while confidence in the wider economy remains low," Neil Bellamy, consumer insights director at GfK, said.

"To many consumers, the UK economy is beginning to resemble an untethered boat drifting slowly out to sea," he added.

Impact of Inflation on Consumer Behavior

An index of how consumers view the economic outlook for the next 12 months decreased by two points to -31, while a measure of expected changes to personal finances over the coming year rose four points to +6.

Britain's economy has been slow to grow, inflation rose last month for the first time since July while wage growth cooled. Bank of England Governor Andrew Bailey has said inflation is likely to return to near the central bank's 2% target in April or May.

Official data due later on Friday is expected to show 0.1% drop in monthly retail sales in December.

The GfK survey was based on a poll of 2,002 individuals conducted between January 2 and January 15.

(Reporting by Suban Abdulla; editing by David Milliken)