Confusing UK election results and weakening of the housing market have led to a sharp loss of confidence among consumers, leaving the country dependent on exports to avoid recession. The UK consumer confidence index measured by YouGov has dropped to 106.9 points in June and the levels are slightly higher than those reported after the stunning decision for Brexit during the last year’s referendum.
“Our preliminary assessment is that economic growth will sharply slow in the coming months and the country will be saved from recession only through strong international trade”, said the Deputy Chief of Centre for Economics and Business Research, Douglas McWilliams.
Prime Minister Teresa May’s failure to secure a parliamentary majority during the parliamentary elections, raising the prospect of a weak government, is tiring for consumers who already feel the burden of higher inflation and weaker pay growth.
But the real cause for concern is the cooling of the housing market, as this is one of the key things to boost UK consumer confidence over the past few years, comment the economists.
YouGov’s findings are based on data collected between June 9th and June 21st.