DHAKA: Consumer confidence has seen its sharpest drop in 21 years after the UK vote to leave the EU, a survey suggests.

The market research firm GfK conducted a one-off online survey of 2,000 people after the result was known, reports the BBC.

Its confidence index fell by eight points to minus nine, a drop not since seen December 1994.

Less confident consumers tend to curb their spending, which accounts for about two-thirds of the UK economy.

It is also one measure watched by the Bank of England when deciding its next move on interest rates. Governor Mark Carney has already warned the UK’s economic outlook is ‘challenging’ following the decision to leave the EU.

The Gfk survey also suggested that 60% of consumers expect the general economic situation to worsen over the next year, compared with 46% in June. Just 20% expect it to improve, down from 27% last month.

BDST: 1558 HRS, JUL 08, 2016
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