Consumer confidence has fallen this month, according to the latest figures from GfK’s consumer confidence index.

Consumer confidence dropped by five points to –22 in January and all measures were down compared to last month’s data.

GfK’s major purchase index is down four points to -20, the same as January 2024, while the measure for confidence in the general economic situation of the country during the past 12 months is down seven points to –46, five points lower than in January 2024.

Expectations for the general economic situation over the next 12 months have dropped eight points to -34; this is 13 points worse than in January last year.

Neil Bellamy, consumer insights director at NIQ GfK, said that the figures were “particularly steep”, indicating that consumers appear to be losing confidence in the UK’s economic prospects and do not believe that things are changing for the better.

“While the Savings Index on motivation to save money is not included in the calculation of the Overall Index Score, it’s notable that it has leapt nine points in January to +30,” he added. “This sharp increase is unwelcome because it’s another sign that people see dark days ahead and are therefore thinking of putting money aside for safety.”

Rocio Concha, Which? director of policy and advocacy, said that the data reflects the consumer watchdog’s own research, which saw consumer confidence in the future economy fall to -49, the lowest levels seen since December 2022 when the inflation rate was in double figures.

"Consumer confidence and business confidence are two sides of the same coin and pursuing one at the expense of the other would be self-defeating,” she added. “To increase consumer confidence and boost economic growth, the government should encourage effective competition among responsible firms and take action against businesses which break the rules."

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