New year boost for consumer confidence

Consumer confidence improved for the third consecutive month in January going from -22 in December to -19. 

Robyn Duffy Senior Analyst at RSM UK on today’s consumer confidence data: ‘A third successive month of improved consumer confidence bodes well for spending in 2024. The drag on sentiment we’ve seen as a result of successive geopolitical crises, should finally start to wane from the middle of the year. With inflation forecast to reach 2% in Q2; interest rates expected to fall; possible tax cuts post Spring Budget; and real wages continuing to grow - consumers should feel like they have more cash in their pocket by the summer. 

'In the meantime, consumers are set to remain cautious around spending*, but there’s hope yet for January. Black Friday and Cyber Monday tempted savvy consumers to bring Christmas spending forward as November was the only month with an uplift in trade during the festive period. After a tough Golden Quarter, January discounting and this latest boost in confidence should deliver more robust spending for the start of the new year.'

*RSM Consumer Sentiment Survey found 92% of consumers believe higher prices will be the main factor to impact their discretionary spending in the year ahead. (a sample of 1,000 consumers).