Consumer confidence falls to post Brexit low

Consumer confidence has fallen to levels not seen since the post-Brexit period, as a “confusing” economic picture and difficult negotiations with Europe start to impact on shopper sentiment.

GfK’s latest consumer confidence index has reported that overall shopper confidence fell two points in July, following a significant five-point drop last month. 

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Consumers longer term expectations for next year have also dropped five points, while the measure of change to personal finances dropped one point to minus two, one point lower than this time last year.

Furthermore, the major purchase index which measures consumer’s confidence in buying big ticket items dropped two points to minus one, just a point higher than last year. This is worrying news for the kitchen and bathroom retailers, who have all started to see a slow-down in business over the last six months.

“The economic picture across the UK remains confusing and this mood is reflected in the overall index score, which is down by five points,” GfK head of market dynamics Joe Staton 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".

Source: Insight DIY Team & GfK Consumer Confidence measures

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