Consumer confidence in the United Kingdom has recorded a slight uptick in January 2026, with new figures revealing that household resilience, rather than genuine optimism about the economic landscape, is behind the marginal improvement.
A Decade in Negative Territory
GfK's long-running Consumer Confidence Index increased by one point to minus 16 this month. This movement marks an unwelcome anniversary, as it has now been ten full years since this key economic barometer was last in positive territory.
The data presents a complex picture of the British public's financial sentiment. Confidence in personal finances over the next twelve months rose by four points to six, which represents a significant eight-point improvement compared to the same period last year.
Diverging Indicators Highlight Economic Concerns
However, this personal financial confidence stands in stark contrast to expectations for the general economic situation. The measure tracking outlook for the economy over the coming year fell by two points to minus 31, although this figure remains three points higher than in January 2025.
The Major Purchase Index, which gauges consumer willingness to buy big-ticket items, also saw a modest one-point increase to minus 10. This represents a ten-point improvement from the previous year, suggesting some increased willingness to spend on larger items.
Resilience, Not Optimism, Drives Sentiment
Neil Bellamy, GfK's consumer insights director, provided analysis of the latest figures. "January 2026 brings an unwanted anniversary, marking 10 years since consumer confidence was last in positive territory," 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 emphasised the distinction between personal financial management and broader economic confidence. "Yes, perceptions of personal finances have improved, but this is offset by growing concerns about the economy."
A Return to Cautious Self-Reliance
The consumer insights director drew parallels with previous periods of uncertainty. "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."
"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."
Bellamy was clear about the nature of the current sentiment. "Let's be clear, this isn't optimism; it's resilience. Consumers are once again focusing on what they can control – their own spending and saving – while confidence in the wider economy remains low."
He concluded with a vivid analogy that captures the current economic perception among many UK consumers. "To many consumers, the UK economy is beginning to resemble an untethered boat drifting slowly out to sea."
