Consumer confidence has jumped seven points in December with personal finance confidence rising significantly boosted by the vaccine roll-out, according to new market research.

The long-running GfK’s Consumer Confidence Index, carried out regularly since 1974, increased seven points to -26 in December.

While confidence showed a sharp rebound it was still well down in most sectors on 2019.

In terms of personal finance, consumer confidence is up seven points this month to -9; six points lower than December 2019. 

The forecast for personal finances over the next 12 months is up eight points this month at +3; this is the same as December 2019. This suggests consumers’ confidence in their personal finances may recover fully by the end of next year.

The Personal Finance question asked consumers: “How do you expect the financial position of your household to change over the next 12 months?’ (a lot better – a little better – stay(ed) the same – a little worse – a lot worse)."

Confidence in the general economic situation of the UK is up two points at -65. Despite the rise this is still 34 points lower than in December 2019.  

Expectations for the general economic situation over the coming 12 months are up 15 points; eight points lower than December 2019.

The Major Purchase Index has increased by six points to -22 in December; 25 points lower than it was in December 2019.

One of the most positive sectors was the Savings Index which jumped six points to +17 in December; only one point lower than this time last year.

Joe Staton, GfK’s client strategy director, said the announcement of a vaccine programme in the UK had boosted confidence.

He said: “Many might be surprised that we are ending 2020 on a much brighter note after a roller-coaster of a year.

“It’s safe to say that consumers are looking for good news and they have found it in the form of the UK’s Covid-19 vaccination programme getting underway, which has lifted the mood pre-Christmas 2020.

“The 15-point leap in consumer views on the future economy stands out and we have not registered a change of that magnitude for that measure since April/May 2011. The renewed expectations on personal finances looking ahead are also welcome, while the six-point uptick in the Major Purchase Index is good news for online and offline retailers.”

• The UK Consumer Confidence Barometer is conducted by GfK on behalf of the EU, with similar surveys being conducted in each European country. 2,000 UK consumers aged 16+ were polled from 1-11 December.