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Consumer confidence has fallen to levels not seen since the immediate aftermath of the shock Brexit vote according to a survey.
The survey which is conducted by market research specialists GfK’s across the EU found that the consumer confidence index decreased a further two points to -12 in July, following a five-point dip in June, putting confidence levels back to the lows seen in the wake of the Brexit vote last July.
Four of the five measures used in the survey decreased, with the biggest drop arising from the general economic situation, confidence over the next 12 months fell a further 5 points to -28.
While confidence in the economy is falling expectations on personal finance over the next 12-months improved slight up two points to two, anything above zero shows optimism.
Joe Staton, head of market dynamics at GfK, says: “Consumer confidence across the UK has fallen to the level last seen in the immediate aftermath of the Brexit vote.
“The economic picture across the UK remains confusing and this mood is reflected in the Overall Index Score, which is down by five points.
“It’s the sharp drop in confidence about the UK’s general economy – both looking back one year and ahead one year – that is driving the fall. While there’s a small bounce in consumer views of personal finance looking ahead, that’s the only measure that’s up.”
He added: “All bets must now be on a further drift downwards in confidence. Yes, employment is booming, but wages have fallen in real terms since 2008 once inflation is taken into account. And while consumers have increased borrowing to carry on spending, the household savings ratio is now at a record low.
“If Brexit negotiations continue to deliver more questions than answers, it’s unlikely the Overall Index Score will find any tailwinds for some time.”
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