Consumer confidence in the UK fell to its lowest level since the aftermath of the Brexit vote in June, according to the latest GfK survey.
GfK's consumer confidence index declined to -10 from- 5 in May, missing expectations for a smaller drop to -7 as rising prices and worries about the inconclusive general election put shoppers off big purchases.
All five constituents fell in June, with the biggest drop in the major purchase index, which slid eight points from May to 1, eight points lower than June 2016. The index measuring changes in personal finances in the last 12 months dropped three points to -1, seven points below this time last year, while the measure for the general economic situation during the last 12 months was down five points to -25, which was 12 points below June 2016.
John Staton, head of market dynamics at GfK, said: “This month's survey covers the period before and after the UK general election and reveals a sharp drop in confidence among consumers across all measures. The overall index score is just two points away from last year's post-Referendum low of -12. We have falls this month reflecting negative sentiment about our personal financial situation and expectations for the wider economy. The scores on the general economic situation looking forward and back 12 months are now particularly weak.
“All this concern will worry the UK's retailers, with this month's plunge in the major purchase index reflecting our increased caution over non-food spending and our softening appetite for debt. Strong consumer spending has propped up the economy since last June but now the twin pressures of higher prices and sluggish wage growth are squeezing household finances and adding to widespread fears of a Brexit-induced economic slowdown.”