The general election has had an effect on consumer confidence as it drops to its lowest since the Brexit vote took place. The new poll that was conducted by a YouGov and The Centre for Economics and Business Research found that 12 days after the UK voted the consumer confidence index has dropped from 109.1 to lows of 105.2. 

A similar drop took place after the Brexit vote, although more severely as it plunged from 111.9 to 104.3. Another example of how political decisions can severely affect the retail climate in the UK as people become more defensive and worried about the economic future of the country. 

Steven Harmston, Head of YouGov commented: 

“Consumer confidence has been generally ticking downward since last autumn but the events of the past month have placed it under greater pressure”

“The hung parliament seems to have further dampened consumers’ spirits, which were already sinking following the continued squeeze on household finances. But the real cause for alarm will be the cooling of the property market as this is one of the key things that has propped up consumer confidence over the past few years.”

Stax Managing Director, David Hibbert had some reassuring words for worried retailers:

“It’s not the first time we’ve seen political agendas shake consumer confidence, and as always it will start to return rather quickly. These are trying times economically and that’s why it’s more important than ever to stay on top of the game and keep moving forward.”

“At Stax, we’re always looking for ways to support our retail customers and it seems this may be needed now more than ever. I would urge retailers not to panic and instead focus on ways they can innovate to improve business in the face of adversity”.