Consumer confidence experienced a modest increase in January 2026, reflecting a sense of household resilience rather than widespread optimism about the economy. According to GfK’s Consumer Confidence Index, the measure rose by one point to reach minus 16. This marks a significant milestone, as it has been a decade since the index last recorded a positive figure.
The report highlights a notable rise in confidence regarding personal finances. The index for personal financial expectations over the next year surged by four points to six, which is eight points higher than the same month last year. Despite this improvement in personal outlook, expectations for the broader economic situation for the upcoming 12 months declined by two points to minus 31. Nevertheless, this figure is three points higher compared to January 2025.
Decade of Decline in Consumer Confidence
The Major Purchase Index, which gauges confidence in making significant purchases, also saw a slight increase, rising one point to minus 10. This represents an improvement of ten points from January 2025. Neil Bellamy, the consumer insights director at GfK, emphasized the troubling anniversary of ten years since consumer confidence was last positive. He stated, “Even with a one-point increase in headline confidence this month to minus 16, we remain a long way from consumers feeling that better days are around the corner.”
Bellamy elaborated on the current climate, indicating that while perceptions of personal finances have improved, there is a growing concern regarding the overall economy. He stated, “We’ve seen this pattern before. During periods of political and economic uncertainty – most notably in late 2022 – consumers became more cautious but also more self-reliant.”
The latest findings suggest that consumers are adopting a mindset focused on personal financial management. Bellamy remarked, “What we’re witnessing now is a return to that mindset: people feel they can manage their own finances, but they remain unconvinced about the wider economic outlook.”
Resilience vs. Optimism
The report reveals that consumers are concentrating on elements they can control, particularly their spending and saving habits, while confidence in the broader economy continues to wane. Bellamy summarized this sentiment, stating, “Let’s be clear, this isn’t optimism; it’s resilience.”
He concluded with a metaphor that resonates with many consumers’ perceptions, saying, “To many consumers, the UK economy is beginning to resemble an untethered boat drifting slowly out to sea.”
As households navigate through these uncertain times, the slight uptick in consumer confidence underscores a complex landscape where personal finance resilience may not translate into broader economic optimism.
