Consumer confidence in the UK remained steady in the final months of 2024, dipping marginally by 0.2 percentage points, according to Deloitte’s latest Consumer Tracker.
The survey of 3,200 UK adults found that confidence in the UK economy fell sharply by 14 percentage points, reflecting concerns about higher business taxes and sluggish growth.
Almost half (42 per cent) of consumers said they spent more overall on Christmas expenditure in 2024 compared to the previous year, but 54 per cent attribute this to higher prices.
Two in five consumers also stated that they did their Christmas shopping before December, which could have been a tactic to spread the cost of the festive season
Sentiment towards personal debt improved significantly, rising by 6 percentage points, driven by interest rate cuts.
However, this was offset by a 4 percentage point decline in confidence regarding disposable income, which remains under pressure due to high costs of essentials.
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “As many grapple with an inflation hangover, consumers likely need more time to digest the volatility and uncertainty of the last few years.
“Consumer recovery this year will depend on what happens with inflation, especially in the more essential categories like food.