The December index registered an overall score of -22 based on a survey of 2,003 UK adults carried out between 29th November and 8th December 2023.

Respondents rated the changes in their personal finances during the last year at an overall score of -14, two points up from November and 14 points better than December 2022.

The forecast for personal finances over the next 12 months increased one point to -2, which is 27 points higher than this time last year.

The measure for economic performance of the UK during the past year was up five points to -44, a 22-point improvement on December 2022.

The December score for expectations for the general economic situation for the year ahead rose one point from the previous month to -25, which is also 28 points better than in December last year.

The major purchase index, which measures whether now is a good time to make a major purchase, was up one point to -23, and 11 points higher than this month last year.

The savings index, which sets out whether the time is right to save money, increased two points to a positive score of 27, and seven points higher than December last year.

Joe Staton, client strategy director at GfK, said: “Against the backdrop of flatlining economic growth, interest rates at a 15-year high, and price rises potentially eroding disposable income for years to come, the Consumer Confidence Index shows a modest improvement this month with gains across all key measures.

“Despite the severe cost-of-living crisis still impacting most households, this slow but persistent movement towards positive territory for the personal finance measure looking ahead is an encouraging sign for the year to come.”