UK consumer confidence hits 15-month low as Brexit fears mount, GfK says

The uncertainty surrounding the outcome of the referendum over Britain's membership of the European Union and renewed concerns over a financial slowdown in the Eurozone have seen consumer confidence fall to its lowest level in more than a year.

In a report released on Friday (29 April), market research firm GfK said its consumer sentiment indicator hit the lowest level in 15 months in April, falling to -3 from a reading of 0 in the previous month.

GfK said the survey, which was conducted in the first two weeks of April and covered 2,000 people, recorded a decline in all the areas measured. UK consumers feel less confident about their personal financial situation, their view of the UK economy has deteriorated and they do not think this is a good time to make a major purchase.

"Mixed messages about a post-Brexit world and the ongoing Eurozone crisis are casting a cloud over our economy," said GfK's Joe Staton.

"The biggest dent to confidence comes from consumers' depression [concerns] about the general economic situation in the UK for the next year, dropping 20 points in 12 months. Against this backdrop, even faith in our personal economic fortunes has taken a battering, contributing to the overall fall in the numbers."

Figures released on Wednesday, showed the UK's gross domestic product (GDP) grew 0.4% in the first quarter of 2016 compared with a 0.6% gain in the previous quarter. However, analysts remain divided over how much of the current economic slowdown in the UK is down to the uncertainty surrounding the upcoming referendum.