- Consumer confidence at lowest point since July 2013
- Seven out of eight confidence metrics down this month
- Experts warn dent in consumer confidence could have knock-on effect on retail spending
Consumer confidence has slumped to its lowest point in three years following the vote for Brexit, latest official figures have revealed.
The consumer confidence index for July, compiled by YouGov and the Centre for Economics and Business Research (Cebr), was 106.6 – its lowest monthly level since July 2013.
Experts have warned the dampening of consumer confidence could have a knock-on effect on retail spending.
The index, based on the views of 6,000 adults, has fallen 4.7 points in the last month, which is the joint highest one-month decline since the summer of 2010.
In particular confidence over household finances and property prices have suffered.
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.”
Seven out of eight consumer confidence metrics were down, apart from confidence in job security over the next 12 months.
Stephen Harmston, head of YouGov added: “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.”
Separately, figures from Deloitte this week showed that confidence had remained stable in the immediate days after Brexit, but confidence in job security fell.