June saw a drop in consumer confidence across all measures as the surprise election result sent both the pound and shoppers’ willingness to buy plummeting.
Gfk’s consumer confidence barometer saw confidence nudge its lowest point since the Brexit vote a year ago. Overall the index showed a five point drop to –10 with the Major Purchase Index showing the most significant decline of eight points to +1.
Every measure on the index showed a decline throughout the month, alongside a five point drop in the perception of the general economy, down 12 points compared to last June to -25.
This was mirrored in confidence in the general economy for the year ahead, dipping two points in the month to -23 equating to a nine-point year on year drop.
Confidence in personal finances faltered, dropping three points to -1 year-on-year
“The scores on the general economic situation looking forward and back 12 months are now particularly weak,” Gfk’s head of market dynamics Joe Staton said.
“All this concern will worry the UK’s retailers, with this month’s plunge in the Major Purchase Index reflecting our increased caution over non-food spending and our softening appetite for debt.
“Strong consumer spending has propped up the economy since last June but now the twin pressures of higher prices and sluggish wage growth are squeezing household finances and adding to widespread fears of a Brexit-induced economic slowdown.”