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Consumer confidence plunged after election


Consumer confidence plunged in the wake of the General Election to its lowest level since the aftermath of the Brexit vote, new figures show.

Research from YouGov and the Centre for Economics and Business Research (Cebr) showed the hung parliament produced a sharp fall similar to that seen following the referendum a year ago.
Two key factors were a decline in optimism over house prices and a “continuing slow puncture of people’s household financial situations”, the report said.
The consumer confidence measure fell from 109.1 prior to the election result to 105.2 in the 12 days afterwards, compared to a fall from 111.9 to 104.3 following the vote on EU membership.
Douglas McWilliams, deputy chairman at Cebr, said: “It looks as though the indecisive result of the election has seriously affected economic prospects already dampened by Brexit uncertainty.
“The data shows a sharp drop in consumers’ confidence about their own financial situation and even more so about house prices.

“This will affect spending in the high street, in shopping centres and online.”
Stephen Harmston, head of YouGov Reports, said: “Consumer confidence has been generally ticking downward since last autumn but the events of the past month have placed it under greater pressure.”
For June as a whole, the report measured consumer confidence at 106.9, its second lowest level since the summer of 2013. It has only been lower in the aftermath of the Brexit vote.
The findings also reflect a squeeze on household finances with inflation at its highest level in nearly four years as wage growth stalls.
They come a day after British Bankers’ Association (BBA) figures showed a slowdown in consumer borrowing growth and a further fall in mortgage approvals in May.

Source: SKY