British consumer confidence as recorded by GFK consumer confidence dropped sharply in the aftermath of the referendum where the majority of the Britons voted in favor of exiting from the Union. GFK released an one-off special survey to measure the post-referendum sentiment. The core index has dropped 8 points to -9, which is the sharpest drop in 21 years. The survey was run from June 30th to July 5th.

Here are the few details,

• Personal financial situation over last 12 months declined by 3 points and 12 months ahead declined by 6 points.
• General economic situation over last 12 months declined by 6 points, whereas over next 12 months declined by 15 points.
• Major purchases index dropped 12 points and savings index rose 4 points.

The survey points out the people are most concerned with regard to the economy and very much likely to cut down their purchases and save more, which means at the immediate aftermath sectors like retail, fashion, and lifestyle, groceries, tourism, and real estate can take a major hit.

So why the Britons are less confident, when the majority of them voted in favor of an exit?

The survey shows those who voted in favor of an exit from the Union are more confident (-5) than those who voted in favor of staying (-13). Still, it’s a decline nonetheless. Interestingly, Northern England that voted in the favor of an exit registered larger confidence drop (-19) compared to Scotland (-11) which voted to remain in the bloc.

One of the major reason could be the old, who were much more confident about their vote to exit the Union couldn’t foresee the turmoil after. In addition to that, politics could have also taken its toll. The referendum has led to a major leadership crisis in the prominent parties in Britain and political talks have suggested there could also be delay in any decision making like triggering of Article 50. So even those who voted out will face years of political uncertainties.

 In addition to that, Scotland’s own preparation to exit the United Kingdom and join the European Union may have spooked many, especially since pre-referendum survey showed Britons are more worried on Scotland leaving the kingdom that they leaving the bloc themselves. The financial turmoil and the sterling’s drop must’ve also taken its toll.

As the people feel that they have been betrayed by the exit campaigners and scaremongers were right, calls for a second referendum will go louder.