Consumer confidence has fallen to its lowest point in a year following the uncertainty surrounding Brexit, according to Verdict Retail.
Verdict Retail’s poll of 2,000 UK consumers found that 59% of consumers are expecting the economy to worsen over the next six months, up 24 percentage points on last month.
Of those surveyed, 48% said they expected prices to rise over the next six months as a result of the UK’s decision to leave the EU.
More than a third (39%) of consumers expected to spend less on clothing and more on food and groceries.
Consumers in the 18-24 age bracket were most likely to agree that they would be spending less because of Brexit, while those aged 45+ tended to disagree.
Zoe Mills, analyst at Verdict Retail, said: “The sharp drop in confidence signifies the uncertainty felt by consumers in light of the EU referendum result. Household budgets will fall under greater strain, and while Verdict Retail’s future sentiment index indicates that consumers intend to absorb the price rises at the expense of savings, this is likely to prove unsustainable in the long run.”