22 August 2017 - Janet Bird
Consumer confidence in the UK took a severe hit as a result of the EU referendum result, new research has found.
The latest Global Survey of Consumer Confidence and Spending Intentions by consumer research company Nielsen found the UK had fallen from second to ninth place in Europe when it came to consumer confidence, mainly due to the collapse in the value of the pound since the Brexit vote and the growth in inflation.
Over half of Britons surveyed during the second quarter of 2017 admitted resorting to cost cutting measures.
Indeed, the survey found that 45 percent of respondents believe the UK is currently going through a recession.
With slow wage growth further squeezing disposable incomes, Nielsen found British consumers reduced their household spending at the highest level for two years in the three months to June.
The survey showed nearly a third of people were switching to cheaper grocery brands, while more than a quarter were trying to reduce their gas and electricity spend.
The research also revealed, however, that people were reluctant to sacrifice 'treats' like holidays and takeaway meals, preferring to try and save money by reducing household grocery budgets.
But despite the fall in consumer confidence, the UK's score of 99 points remained higher than the European average of 85.