Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
UK client confidence has been detrimental or flat for 10 years, underlining the impression of the Covid-19 pandemic, political upheaval and the price of residing disaster on Britons’ morale, in accordance with a carefully watched survey.
The GfK client confidence index — a measure of how folks view their private funds and broader financial prospects — rose by 1 level to minus 16 in January, the analysis group mentioned on Friday.
Neil Bellamy, client insights director at GfK, mentioned: “January 2026 brings an undesirable anniversary, marking 10 years since client confidence was final in constructive territory.”
Even with a 1 level improve, “we stay a great distance from customers feeling that higher days are across the nook,” he added.
January’s determine, primarily based on a survey carried out within the first two weeks of the 12 months, was up from a low of minus 23 in April 2025.
Nonetheless, it was nonetheless decrease than the close to three-year excessive of minus 13 reached in July 2024, when Labour’s victory within the basic election boosted morale. This was swiftly adopted by successful to sentiment amid rumours of a “painful” funds coming that autumn, significantly amongst older folks.
Client confidence is carefully watched as an early indicator of family spending, which has been very weak within the UK for the reason that pandemic.
The index was final in constructive territory in January 2016 when it was at 4 however plunged into double-digit detrimental figures following the Brexit referendum in June that 12 months. Family sentiment in regards to the economic system and its outlook was dealt an additional blow by the Covid-19 pandemic.
The price of residing disaster triggered one other sharp decline within the evaluation and outlook of private funds, which each hit file lows in 2022 and 2023.
Some content material couldn’t load. Test your web connection or browser settings.
In January 2026, client outlook over private funds rose 4 factors to a constructive rating of six, with an identical enchancment of their evaluation of the previous.
Nonetheless, there was a 5-point drop to minus 45 within the evaluation of the economic system over the previous 12 months and a deterioration within the outlook.
“Individuals really feel they will handle their very own funds, however they continue to be unconvinced in regards to the wider financial outlook,” mentioned Bellamy. “Customers are as soon as once more specializing in what they will management — their very own spending and saving — whereas confidence within the wider economic system stays low.”
He added: “To many customers, the UK economic system is starting to resemble an untethered boat drifting slowly out to sea.”
Wages continued to increase at a gradual tempo within the three months to November, however unemployment has risen from final 12 months, whereas inflation accelerated to three.4 per cent in December, in accordance with official statistics printed this week.
Ellie Henderson, an economist at Investec, had forecast some marginal enchancment in confidence in January, largely as a result of the November 2025 Funds was “not as unhealthy as many feared”, with the majority of additional taxes not kicking in till 2028.
She anticipated that additional rate of interest cuts from the Financial institution of England and a stabilising labour market would immediate “a extra marked rebound because the 12 months progresses”.
Leave a Reply