Consumer Confidence Suffers Biggest Drop For More Than 26 Years Following Brexit Vote

Latest figures from GfK show that consumer confidence suffered its sharpest month-by-month drop for more than 26 years in the weeks following the vote to leave the EU.

GfK’s Consumer Confidence Index dropped 11 points in July to -12 as consumers became concerned about impact the vote could have on their finances. All five measures used to calculate the Index saw decreases.

Joe Staton, Head of Market Dynamics at GfK, commented: “Consumers in post-Brexit Britain are reporting higher levels of concern this month. We’ve seen a very significant drop in confidence, as is clear from the fall in each of our key measures, with the biggest decrease occurring in the outlook for the general economic situation in the next 12 months (-19 points).”

He added: “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 (-9 points). 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.”

NAM Implications:
  • Meanwhile, any growth comes at the expense of the competition…
  • In other words, time to go back to basics and search for compelling reasons to buy…