LONDON - Consumer confidence fell the most in 21 years, after the British decided to withdraw from the European Union (EU), which is also known as Britain exit or Brexit.
GfK market research company conducted a survey of 2,000 people submitted online, the result is the confidence index fell eight points to minus one. This is the smallest decline since December 1994.
Reduced consumer trust will restrain their spending. Personal consumption accounts for two-thirds of the British economy.
Central Bank Governor, Mark Carney, has warned that economic conditions will look 'challenging' after the British exit from the EU. Consumer confidence also used the British central bank to decide on interest rates.
GfK survey also said 60% of consumers view economic conditions will worsen next year, only 20% who viewed that economic conditions will improve.
Regional variations
As many as 33% of consumers believe that prices will rise sharply in the next 12 months.
Consumer confidence in the UK itself is very varied. Northern England fell 19 points, 11 points being Scotland southern England only dropped 2 points.
The survey was conducted from June 30 to July 5 to capture the mood of consumers shortly after the referendum that took place June 24 last.
"Our analysis states that a direct result of the referendum is, sectors such as travel, fashion and lifestyle, interior household and food items are most vulnerable large cut spending," said Joe
Staton, head of GfK Market Dynamics.
A separate survey indicates retailers are already feeling the effects Brexit. Official economic figures from the Office for National Statistics which show the impact of the new Brexit will be issued in August.