Consumer confidence sinks back to post-Brexit low

Overall shopper sentiment slid two points to -12 in June, according to the latest GfK figures.

The last time consumer confidence was this low was in the immediate aftermath of last July’s referendum following the UK’s shock decision to leave the EU.

Four of the five measures on its consumer confidence index decreased, with the biggest drop arising from the general economic situation.

The view of the general economy over the last 12 months dropped six points, while expectations for the economy over the coming year declined five points.

These sharp drops drove the overall slide.

Drifting downwards

However, there’s been a small bounce in consumer views of personal finance looking ahead – up two points.

The major purchase index – an indicator of shoppers’ willingness to make big-ticket purchases – fell two points to -1.

GfK head of market dynamics Joe Staton said: “All bets must now be on a further drift downwards. Yes, employment is booming, but wages have fallen in real terms since 2008 once inflation is taken into account.

“And while consumers have increased borrowing to carry on spending, the household savings ratio is now at a record low.”

Looking ahead, Staton said: “If Brexit negotiations continue to deliver more questions than answers, it’s unlikely the overall index score will find any tailwinds for some time.”