Consumer confidence has hit post-Brexit lows as a “confusing” economic picture and sluggish EU divorce negotiations fail to inspire optimism.
The latest results from GfK’s consumer confidence index show that overall shopper sentiment dropped a further two points in July, following a five-point dip in June.
This has dragged the index to the lowest level since immediately after the EU referendum.
Expectations for the general economy over the next year also dropped five points, while the measure of change to personal finances dropped one point to minus two, one point lower than this time last year.
Furthermore, the major purchase index which measures consumer’s confidence in buying big ticket items dropped two points to minus one, just a point higher than last year.
“The economic picture across the UK remains confusing and this mood is reflected in the overall index score, which is down by five points,” GfK head of market dynamics Joe Staton said.
“It’s the sharp drop in confidence about the UK’s general economy – both looking back one year and ahead one year – that is driving the fall.
“While there’s a small bounce in consumer views of personal finance looking ahead, that’s the only measure that’s up.
“All bets must now be on a further drift downwards in confidence.”