Consumer confidence has sunk back to the level last seen in the immediate aftermath of the Brexit vote.
GfK’s Consumer Confidence Index dropped two points to -12 in July as consumers felt less secure about the country’s general economic situation. The last time the Index fell this low was July 2016.
Joe Staton, head of market dynamics at GfK, 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.
“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. If Brexit negotiations continue to deliver more questions than answers, it’s unlikely the Overall Index Score will find any tailwinds for some time.”