Confidence among consumers has dropped to its lowest level in 26 years thanks to the Brexit referendum, according to the latest data from research institute GfK.
British consumer morale plunged to -12 this month – compared to -1 in June – the biggest decline in the monthly Consumer Confidence Index since March 1990.
This is also a further 3-point drop from the -9 recorded by a one-off post-Brexit index in early July, although the rate of decline has slowed dramatically since the immediate aftermath of the referendum.
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“We’ve seen a very significant drop in confidence, as is clear from the fall in each of our key measures,” GfK head of market dynamics Joe Staton said.
“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.”
Scotland had the lowest consumer morale in the UK, where it plummeted by 14 points to -22 in the first two weeks of July. Staton said calls for a second Scottish independence referendum may have attributed to that.
Other consumer surveys have indicated various results since the Brexit vote, with Deloitte earlier this week releasing data showing it has remained the same as it was before the referendum.
GfK’s monthly Consumer Confidence Index dates back to 1974.