The GfK Consumer Confidence Index in the United Kingdom rose by 3 points to -18 in November 2024, marking its first improvement in three months.
UK consumer confidence rises in November
This increase comes amid lower interest rates, higher wages, and reduced concerns about potential tax hikes. The latest reading also represents a rebound from the pre-Budget dip in October, surpassing market expectations, which had predicted a further decline to -22. Chancellor Rachel Reeves recently introduced significant increases in spending, taxes, and borrowing, although the expected extension of income tax thresholds was not part of the plan.
BoE cuts effects
The Bank of England also reduced interest rates for the second time this year, lowering them to 4.75% in November, while wage growth continued to outpace inflation. Neil Bellamy, Consumer Insights Director at GfK, highlighted a notable 5-point rise in consumers' willingness to make big-ticket purchases, suggesting a potential boost in spending for the upcoming holiday season.
