UK consumer confidence has fallen to its lowest level since immediately after last year’s Brexit vote, with concerns around the economy particularly depressing sentiment, a new study reveals.
Consumer research group GfK’s long-running confidence index fell by two points this month, to minus 12 – a level last seen in July 2016.
“The economic picture across the UK remains confusing,” said Joe Staton, head of market dynamics at GfK. “Yes, employment is booming, but wages have fallen in real terms since 2008 once inflation is taken into account. And while consumers have increased borrowing to carry on spending, the household savings ratio is now at a record low,” he said.
“If Brexit negotiations continue to deliver more questions than answers, it’s unlikely the [index] will find any tailwinds for some time.”
The index takes five measures of confidence into account, four of which declined in July. The only measure which increased relates to how consumers forecast their personal finances over the next 12 months. That metric rose by two points.
The other measures relate to how consumers perceive changes in personal finances over the last 12 months, how they feel about the general economic situation over the last year, what their forecast is for the general economic situation over the next year and how appropriate they think the timing now is for making a major purchase.
The survey was conducted on behalf of the European Commission on a sample of 2,000 individuals above the age of 16 between 1 July and 15 July.
