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Consumer confidence 'took clear dive' following Brexit vote

Published 28/07/2016

The Brexit vote saw spending confidence hit a three-year low
The Brexit vote saw spending confidence hit a three-year low

Consumer confidence has taken a "significant and clear dive" to its lowest point in three years following the Brexit vote, a survey has found.

The YouGov/CEBR (Centre for Economic and Business Research) Consumer Confidence Index fell by 4.7 points in the last month, the joint highest one-month decrease since the summer of 2010.

July's Consumer Confidence Index stands at 106.6 - its lowest monthly level since July 2013, when it was 105.8.

The data "confirms YouGov and CEBR's earlier findings that consumer confidence has taken a significant knock in the aftermath of June 23", the report said.

Seven of the eight measures that make up the index declined in the past month with two areas - household finances and property prices - showing a "particularly sharp decline in optimism" for the coming 12 months.

CEBR director Scott Corfe said: "The Brexit vote has had a very real impact on consumers and the effects of this could start to be felt in the real economy in the next couple of months.

"The sharp drop in household financial expectations over the next 12 months point to a contraction of consumer spending that could have a notable knock-on effect in retail spending.

"However, the bigger issue could be house values. If homeowners' fears over their property prices are realised then there could be a very serious impact to both the housing sector and the economy in general."

Stephen Harmston, head of YouGov Reports, said: "The public are still absorbing the EU referendum result but it is clear that consumer confidence has taken a significant and clear dive in the month after the Brexit vote.

"While a lot of the potential shocks have not yet materialised, that is not to say they won't hit home at some point. If data from the real economy starts to point to a downturn then this brittle consumer confidence could easily break."

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