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Consumer confidence: Brits cheer up in time for Black Friday

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Black Friday has become a big deal for British shoppers and a big day for the UK economy, too
Black Friday has become a big deal for British shoppers and a big day for the UK economy, too

UK consumer confidence rose in November following a dip in October, as the public loosens their purse strings in the run up to Black Friday and the Christmas buying period. 

The GfK consumer confidence index, which measures consumers attitudes, picked up to -24 during the month, following a reading of -30 the prior month. 

Joe Staton, client strategy director GfK, said: “Consumer confidence strengthened in November with improvements across all measures. 

“Recent ups and downs in confidence have underlined the nation’s topsy-turvy economic mood as encouraging news about falling inflation and wage growth is offset by high personal taxation, alongside costly fuel and energy bills.”

Its major purchase index – which takes the temperature on Brits likeliness to make a big purchase – also climbed up 10 points on last month’s reading. 

Black Friday has become a big deal for British shoppers and a big day for the UK economy, too
Black Friday has become a big deal for British shoppers and a big day for the UK economy, too

Staton added: “The dramatic 10-point jump in our major purchase sub-measure, reversing some of the worrying 14-point drop we saw last month, will be good news for retailers with Black Friday and Christmas just around the corner.” 

“Despite the acute cost-of-living pressures, many would still like to loosen their purse strings just a little so they can enjoy that feel-good factor we all associate with the festive season.”

UK consumer price inflation rose by 4.6 per cent in the 12 months to October, down from 6.7 per cent in September – which is still above the country’s average rate of 2.82 per cent but down marginally from last October’s record of 11 per cent. 

Linda Ellett, UK head of Consumer Markets, Retail and Leisure for KPMG, said: “Four in ten consumers that KPMG surveyed said that the higher cost of living will require them to spend less on Christmas gifts this year.”

“Even those spending the same amount as last year may well find that it equates to less volume due to the impact of inflation.”

She added: “Retailers are competing for this shrinking spend, with over a third of consumers telling us they are spending more time now searching for the best priced goods.  Whether it be Black Friday, Christmas, or generally – consumers are watching prices and looking out for genuinely good promotions and discounts.”