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Consumers losing confidence in economic prospects
January 27, 2025
The small uplift in consumer sentiment that boosted pre-Chrismas trading has blown away with the January storms, say leading retail analysts.
The key Major Purchase Index from NIQ GfK dropped four points for January to minus 20 – it was running at minus 16 in both November and December.
The Major Purchase Index is a survey that asks consumers how they feel about buying big ticket items like furniture, flooring and applicances.
The Overall Index Score which takes in attitudes to personal finance, savings and the general economic outlook decreased by five points to -22 in January.
“New Year is traditionally a time for change, but looking at these figures, consumers don’t think things are changing for the better," said Neil Bellamy, Consumer Insights Director, NIQ GfK.
"There are particularly steep falls in consumer views on the wider UK economy, both looking back a year (down seven points) and at what’s in store for the next 12 months (eight points lower). These figures underline that consumers are losing confidence in the UK’s economic prospects," he added.
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