Confidence among British consumers has plunged in the aftermath of the shock result of the referendum on membership of the European Union. A one-off poll designed to gauge post-referendum sentiment, conducted by market research firm GfK, said results showed that overall confidence towards the economy and the ability to spend plunged 8 points to -9, the sharpest drop since 1994.

According to the survey, 60% of respondents believed that the economy would deteriorate over the next 12 months compared with the 46% cited by the regular survey in June. 33% of those polled said they expected prices to rise in the same period compared with 20% in the regular poll for June.

“This is a clear indication that many Britons are aware of and obviously concerned by the economic ramifications of the “Leave” vote. The British pound has been crushed in the forex markets and general consensus is that it will go lower as wrangles over the manner in which Britain exits the EU undoubtedly lead to deadlock,” said Kit Morton, chief economist at ISG Global.

The poll showed divisions between those who had voted to leave the EU and those who had voted to remain. Most voting to leave were more upbeat about the prospects for the economy feeling that the decoupling from Europe would improve the country’s fortunes.

“We think there’s more national pride and jingoism behind their assessment,” said Morton.

ISG Global said that the extent of the severity of the Brexit fallout will take time to be fully evaluated but said it was advising clients to rotate out of stock in UK companies that earned most of their revenues in pounds.

About ISG Global:
ISG Global is an investment advisory firm specializing in private money management that serves the expatriate community in Osaka, Japan. Our focus is working with Individuals and families, with assets of $1 million plus, who have a requirement for wealth management coupled with investment advice. All our clients are serviced by highly professional financial experts with comprehensive exposure to a fast moving financial landscape.

The decision to work with ISG Global expertise, is your first step in determining long term financial goals for you and your family. It's because your security and prosperity matter most to us, that we believe ISG Global is a smart and intelligent choice for high net worth individuals.