British consumers saw their confidence in the UK’s economy fall at the sharpest rate in almost 22 years after the vote to leave the European Union.
According to latest market research from Gfk, consumer confidence in the UK fell by 8 points to minus 9, a plunge not seen since December 1994.
The Gfk survey also suggested that 60% of consumers expect the general economic situation to worsen over the next year, compared with 46% in June. Just 20% expect it to improve, down from 27% last month.
While falling consumer confidence is symptomatic of the UK’s vote to leave the EU it is also a troubling pre-cursor to economic turmoil. Consumers are those who could rapidly rescue the situation in the economy, in general, but if they stop spending, the position could get worse really quickly.
Governor Mark Carney has already warned the UK’s economic outlook is “challenging” following the decision to leave the EU.
For a clearer view of the situation, Gfk has helped with the creation of the infographic below:
Gfk Consumer Confidence Infographic