British consumer confidence plunged sharply in January

On January 24, Jinshi data reported that consumer confidence in the UK dropped significantly in January, hitting its lowest level in over a year. The rise in government borrowing costs and warnings of layoffs have impacted economic confidence. The latest data shows that the GfK Consumer Confidence Index dropped 5 points to -22, the lowest level since the end of 2023. Consumer confidence is a leading indicator of household spending - a more pessimistic sentiment means people are more inclined to save rather than make large purchases. Despite wages rising above the inflation rate throughout 2024, households accumulated significant savings last year, limiting the recovery in spending. Neil Bellamy, Director of NIQ GfK Consumer Insights, pointed out that the decline in overall economic confidence in the UK is particularly significant. He said, ‘These data highlight that consumers are losing confidence in the UK economic outlook.’