Brexit sparks consumer fears over UK economy and personal finances

A survey has revealed that 61% of people are worried about the country’s situation following the shock EU referendum result and believe it will have a “negative impact” on their own financial well-being.

Half of consumers said they are now likely to save a higher proportion of their wages following the vote to exit the European Union, while 61% of people are concerned that the price of food will rise, according to the study by Retail Economics.

More than a third (37%) of the 2,000 consumers surveyed said they were likely to cut back on big-ticket purchases such as furniture and electrical goods that they had previously planned to buy prior to last week’s referendum.

Some 58% of shoppers said the result would also prompt a “negative impact” on their spending on non-essential items, with a quarter of those saying they would cut back on electrical goods such as TVs, mobile phones and tablets.

A further 16% of those predicting a “negative impact” on non-essential spending said they would scale back on DIY and gardening, while 14% plan to spend less on clothing and footwear.

The food and health and beauty sectors look set to suffer least from consumers reining in their spending following the referendum.

Just 10% of those who said their non-essential spending would take a hit from Brexit plan to spend less on groceries, while 9% will cut back on health and beauty products.

Retail Economics chief executive Richard Lim said: “The results from our Consumer Attitudes Survey show concerns over the future of the economy, personal finances and rising costs of living are likely to choke off consumer confidence and spending.

“With the consumer sector the driving force behind the economic recovery so far, it is difficult to see what can compensate should a more widespread slowdown materialise.”