Consumer confidence in UK at 26 year low due to Brexit – The London Economic

Consumer confidence in UK at 26 year low due to Brexit

More depressing Brexit fall-out news, as household and manufacturing confidence is the lowest it has been since 1990.

The study was carried out by GfK, a market research company, and the index indicated the sharpest month on month drop for almost thirty years.

Fears about the economic future of the UK post Brexit have dramatically damaged the confidence of UK manufactures and households alike.

People are lot gloomier about their own personal finances and are less likely make big ticket purchases such as cars or expensive white goods.

The Gfk study adds to more evidence to the growing unease across the nation post-Brexit.

Consumers are worried about job uncertainty and pay freezes so are reigning in any unnecessary spending.

The researchers surveyed 2,000 people for the full report between 1 and 15 July. Joe Staton, head of market dynamics at GfK said: “Consumers in post-Brexit Britain are reporting higher levels of concern this month.

“We’ve seen a very significant drop in confidence, as is clear from the fall in each of our key measures, with the biggest decrease occurring in the outlook for the general economic situation in the next 12 months.

“However, the index continues to remain at a relatively elevated level by historic[al] standards. Its future trajectory depends on whether we enter a new period of damaging economic uncertainty or restore confidence by embracing a positive stance on negotiating a new deal for the UK.”

The UK economy is on a knife-edge and a recession is feared, there was a GDP boost in the lead up to the referendum, but that could be the calm before the storm. It was assumed the Remain vote would easily win, so there was business confidence, which appears to have faded away since the outcome of the vote.

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