Consumer confidence in UK suffers biggest monthly fall in 26 years

29 Jul 2016


Consumer confidence in the UK has suffered its biggest monthly fall in more than 26 years, according to more figures reflecting increasing post-referendum concern.

The Brexit vote led to a ''dramatic'' 11-point drop to this month's GfK Consumer Confidence Index survey conducted on behalf of the European Commission.

The survey, dating back to 1974, saw its overall score drop from minus 1 to minus 12 - the sharpest month-by-month fall since March 1990.

The figure comes as a further three-point slide from the minus nine recorded by the index's Brexit Special in early July, which found 60 per cent of consumers expected the general economic situation to worsen in the next 12 months.

Each of the latest survey's key measures recorded a drop and the biggest decrease – a 19-point fall was in the outlook for the general economic situation  over the next 12 months, taking it to 32 points lower than this time last year.

The forecast for personal finances over the next 12 months was down by nine points this month to minus 1, which was seven points lower than this time last year.

Joe Staton, head of market dynamics at consumer research agency, GfK, said in a statement, ''Consumers in post-Brexit Britain are reporting higher levels of concern this.

Consumer confidence also plummeted in Scotland following the Brexit vote according to the survey.

Consumer confidence was lower in Scotland than anywhere else in the UK following the referendum, with warnings that the prospect of a second referendum risked prospects of economic uncertainty.

GfK said confidence in Scotland fell by 14 points to minus-22 in the first two weeks of July, which was nearly twice as low as the UK average of minus-12.

Staton, said calls for a second Scottish independence referendum following the Brexit vote, which contradicted the majority Remain position of Scottish voters was adding to the economic uncertainty.

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