The firm's Consumer Confidence Index was up two points to -22 in December, the highest number since September and significantly above this time last year, when the overall index stood at -42.
"Although the headline figure of -22 means the nation's confidence is still firmly in negative territory, optimism for our personal finances for the next 12 months shows a notable recovery from the depressed -29 reported this time last year," said Joe Staton, client strategy director at GfK.
UK inflation falls to 4.6% in October
Staton noted the recovery in this number best reflects household financial optimism and control over personal budgets.
"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," he added.
UK economy shrinks 0.3% in October as third quarter growth remains flat
The results come against the backdrop of flatlining economic growth, interest rates at a 15-year high and inflation above 4% in October.
The measure for the general economic situation of the country during the last 12 months is up five points at -44, 22 points higher than in December 2022.
Expectations for the general economic situation over the next 12 months have increased by one point to -25, a 28-point improvement from December last year.