Higher levels of concern hit consumer confidence in the UK with July registering the sharpest month-by-month drop for more than 26 years, says GfK in its latest report.

The market research organisation claims that the index measuring changes in personal finances during the last 12 months has decreased by seven points this month to -1, while the measure for the general economic situation of the country has decreased by 12 points this month to -25, resulting in the overall consumer confidence index decreasing 11 points to -12, a further 3 points down since the Brexit Special survey at the start of July.

Joe Staton, head of market dynamics at GfK, says: “Consumers in post-Brexit Britain are reporting higher levels of concern this month. We’ve seen a very significant drop in confidence, as is clear from the fall in each of our key measures, with the biggest decrease occurring in the outlook for the general economic situation in the next 12 months (-19 points). Although the rate of decline is slower than reported in the aftermath of the vote to leave the EU, consumers in the UK were also less optimistic about the state of their personal financial situation going forward (-9 points).

“However, the Index continues to remain at a relatively elevated level by historic standards. Its future trajectory depends on whether we enter a new period of damaging economic uncertainty or restore confidence by embracing a positive stance on negotiating a new deal for the UK.”