Consumer confidence enjoys summer bounce post-Brexit
A survey of consumer confidence has indicated that consumer sentiment has resumed an upward tack following a dip in the immediate aftermath of Britain’s vote to leave the European Union.
Figures collated by market research firm GfK showed consumer confidence bounced back to -7 in August, up from just -12 in July, buoyed by a further reduction in interest rates, rising employment and low inflation.
Giving his take on the stats GfK’s Joe Staton 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.”
In tandem with a loosening of purse strings consumers are now much less likely to save however with a separate savings survey showing a collapse of 16 points in a month indicating that fewer people are putting cash aside for a rainy day.
This reversal in sentiment is being credited with a quarter point reduction in the Bank of England’s benchmark interest rate from 0.5 to 0.25 per cent, a record low.