Consumer Confidence Recovers After Brexit Hit


Consumer confidence partly recovered this month as Britons chose to carry on spending rather than saving after the Brexit vote.

Market research firm GfK’s headline consumer confidence reading was -7 for August.

That was up from -12 in July when the index saw its sharpest drop in 26 years, following the EU referendum.

The report from also indicated a steep fall in saving as interest rates hit a new historic low.

Meanwhile there was a rise in its index of demand for major purchases, such as cars.

Joe Staton, head of market dynamics at GfK, said: “We’re reporting some recovery in the index this month as consumers settle into the new wait-and-see reality of a post-Brexit, pre-exit UK.”

The improved reading was partly driven by better than expected economic data following the referendum, including July’s 1.4% rise in retail sales.

Consumer sentiment was also lifted by the cut in interest rates to 0.25%, low prices and high levels of employment.

Mr Staton said: “We Brits are clearly determined to carry on shopping for today rather than saving for tomorrow.”