Rise in UK consumer confidence gives green light to Black Friday

(Alliance News) - UK consumer confidence bounced back in November, figures on Friday showed, giving retailers much needed encouragement amid the key Black Friday weekend and the run-up to Christmas.

"The clouds are parting for consumer confidence in the UK," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

Despite continued cost-of-living concerns, consumers look set to loosen their purse strings and enjoy the festive season.

GfK's long-running consumer confidence index rose by six points, although it still languished at minus 24. Confidence in the general economy over the next 12 months also increased by six points to minus 26 points. This is 32 points higher than a year ago.

"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," said GfK's Joe Staton.

"Although the overall index score is still tracking firmly in negative territory, it is good to see that consumers are more optimistic about their personal financial situation. This shows people are thinking about their future with increased confidence and willingness to look beyond the short-term."

Lloyds Bank commented: "Since the data were collected prior to October [consumer price index] inflation coming in below expectations and the [national insurance contribution] cuts being announced in the autumn statement [on Wednesday], confidence may show a further rise in the December report."

UK retailers are expecting to see record levels of traffic over the Black Friday-Cyber Monday weekend that follows the US Thanksgiving Day holiday.

AJ Bell's Russ Mould called Black Friday "a big day for the retail and leisure sectors".

Commenting on Black Friday, interactive investor's Richard Hunter said: "Black Friday will not only provide a snapshot on the latest levels of consumer activity but will also act as a precursor in the run up to the busy festive season. Of late, there have been indications that savings accumulated during the pandemic have begun to run dry, in turn propelling higher spending on credit cards, which the banks will continue to monitor for any signs of credit deterioration."

By Sophie Rose, Alliance News senior reporter

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