Brexit vote result leads to plunge in consumer confidence

Each of the latest survey's key measures recorded a drop
Each of the latest survey's key measures recorded a drop

Consumer confidence has suffered its sharpest monthly fall in more than 26 years, according to yet more figures revealing deepening post-referendum concern.

The Brexit vote caused a “dramatic” 11-point drop to this month’s GfK Consumer Confidence Index, carried out on behalf of the European Commission.

The survey, which dates 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 is a further three-point slide from the minus nine recorded by the index’s Brexit Special in early July, which found 60% 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. 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 is down by nine points this month to minus 1, which is seven points lower than this time last year.

Joe Staton, head of market dynamics at GfK, said: “Consumers in post-Brexit Britain are reporting higher levels of concern this month.

“Although the rate of decline is slower than reported in the aftermath of the vote to leave the EU, consumers in the UK were also less optimistic about the state of their personal financial situation going forward.

“However, the index continues to remain at a relatively elevated level by historic 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.”