Consumers’ confidence on the economy and personal finances dives after EU vote

‘The future trajectory depends on whether we enter a new period of damaging economic uncertainty’

CONSUMER confidence plummeted at the fastest pace in more than a quarter of a century following the Brexit vote, according to a closely watched survey.

GfK’s latest confidence barometer showed households were more pessimistic about their personal finances and the general economic outlook compared with June, with all five measures of its survey falling sharply this month.

Its headline reading fell to -12 in July, from -1 in June. This represents the biggest monthly drop since March 1990 and is steeper than the decline to -9 recorded by an initial estimate in the first week of July.

Joe Staton, head of market dynamics at GfK, said: “We’ve seen a very significant drop in confidence, as is clear from the fall in each of our key measures.”

Mr Staton said the index was still at a “relatively elevated level by historic standards”, and the survey suggested Britons were not yet preparing to stash away more cash into their savings accounts in anticipation of a downturn.

“The 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,” said Mr Staton.

GfK’s survey of 2,000 people was conducted in the first two weeks of July, with the poll ending just before Theresa May became Prime Minister.