UK Consumer Confidence Hits 'Dramatic' Low

Consumer confidence in the UK has "dramatically" fallen in the month following the Brexit vote, new figures suggest.

The monthly GfK (Swiss: GFK.SW - news) index, which has been running since 1974, saw its sharpest monthly fall since 1990 - down 11 points - as Britons digest the country's decision to leave the European Union.

The confidence barometer now stands at -12, compared to -1 in June's poll before the referendum.

It (Other OTC: ITGL - news) shows that consumers are less optimistic about their personal finances for the next 12 months, and that many believe the economy will generally worsen in the coming year.

There was also a considerable drop in the public mood when it came to willingness to make a major purchase at some point over the next year.

Joe Staton, the head of market dynamics at GfK, said: "Consumers in post-Brexit Britain are reporting higher levels of concern this month.

"However, the index continues to remain at a relatively elevated level by historic standards.

"Its future trajectory depends on whether we enter a new period of damaging economic uncertainty or restore confidence by embracing a positive stance on negotiating a new deal for the UK."

Earlier in July, GfK had produced a "Brexit Special" index to gauge levels of consumer confidence in the days immediately after the ballot.

That recorded a score of -9, meaning this latest survey is a further three-point drop in confidence.

Interestingly, the Brexit Special had found a stark divide in consumer confidence between those who had voted In and those who voted Out - with consumer confidence some eight points lower for Remain supporters than Leave supporters (Other OTC: UBGXF - news) .