Brexit fears hit consumer confidence

London - UK consumer confidence is taking a punch with the possibility of exiting the European Union after June 23, according to market research agency Gfk.

The crisis is hitting home

“Looking at how consumers see the wider economy developing over the next 12 months, we are 18 points lower this month than in March 2015. So, despite good economic headlines about low inflation, interest rates and prices in the shops, concerns about Brexit and the ongoing Eurozone crisis appear to be hitting home,” stated Joe Staton, Head of Market Dynamics at GfK.

He noted that while UK consumers remain “resolutely upbeat” about their personal financial situation… concerns about prospects for the general economic situation continue to "dampen our mood.”

The index measuring changes in personal finances during the last 12 months fell by one point this month to +4, six points higher than last March.

The measure for the General Economic Situation of the country during the last 12 months is unchanged this month at -10; some 11 points lower than a year ago.

General economic expectations are 18 points lower than 2015

Expectations for the General Economic Situation over the next 12 months are unchanged at -12, some 18 points lower than this time last year.

Meanwhile, The Major Purchase Index fell one point this month to +11, two points higher than this time last year.

The UK Consumer Confidence Barometer is conducted by GfK on behalf of the EU, with similar surveys being conducted in each European country. In producing its own reports on the whole of Europe, the EU applies a seasonal adjustment to the data, to smooth out any changes that are functions, at least in part, of the time of year.

GfK is a market research company providing relevant market data and consumer information to enable its clients to make better decisions. The company utilises over 13,000 market research experts to combine their talent with GfK’s data science experience.