Friday, July 8, 2016

UK: consumer confidence falling after Brexit – Le Figaro

Confidence among British consumers fell after the vote on leaving the EU, at a rate that had not been seen for 21 years, says a study released Friday by GfK. According to this survey especially from June 30 to July 5, to measure morale post-Brexit British, the victory of “Leave” in the referendum resulted in a decline in the confidence index of 8 points to -9. “There has been no marked decline over the last 21 years (December 1994),” said GfK.

Logically, the British who voted to stay in the EU were more depressed (-13 points) while voters who voted for out were less pessimistic (-5 points). “In these uncertain times, we have seen a significant decline in confidence, each of the key components of the index have dropped, the biggest decline on the general economic situation over the next twelve months,” said Joe Staton, responsible for market dynamics at GfK. 60% of respondents expect indeed that the UK economy will deteriorate over the next twelve months, against 46% in June. And the proportion of people thinking that prices will increase rapidly jumped 20 percentage points (from 13 to 33%).

“Our analysis suggests that one of the immediate consequences of the referendum is that sectors such as travel, fashion, decorating, DIY and distribution are particularly vulnerable to a reduction in consumer spending, “explains GfK

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