UK Consumer Confidence Drops

UK consumer confidence declined in the immediate aftermath of the June 8 snap general election, which resulted in a hung parliament after Prime Minister Theresa May’s Conservatives lost their majority, a survey from YouGov and Centre for Economics and Business Research (Cebr) showed. A gauge of consumer confidence declined to 105.2 following the election from 109.1 during the week before the vote, YouGov and Cebr said on Tuesday. YouGov said it’s able to track changes in confidence in reaction to major events as it collects data every day. The survey is based on more than 6,000 interviews conducted each month.

The drop was just slightly less steep than after the referendum on European Union membership last June in which voters backed leaving the bloc. Consumer confidence fell from 111.9 in the weeks before the Brexit vote to 104.3 in the days after it. The overall consumer confidence index for June fell to 106.9 from 108.4 in May, the second lowest reading since the summer of 2013. The two main factors behind the drop were a sharp decline in optimism over property prices and people’s assessment of the financial situations of their households.

By Kristen Tardella