Only a few months ago consumers were still feeling confident in the UK economy. Now, as the date nears concerning the European Union exit, consumers are concerned about what an exit would mean and how it would impact them personally. In a recent report of the GfK conducted Consumer Confidence Index, consumers expressed more fear in the expectations of the economy for the next year. The index recorded a level of negative 12 in March, which is a reduction from the positive level of 6 recorded for the same month in 2015.

Concerning their personal financial situations, consumers were more positive and had a cheerier outlook for the next 12 months. In this area, consumers pushed the index up to a positive 9 for March, which shows more optimism than the positive 7 recorded for the same month last year.

Overall the index was at a level of zero, and no change when compared to the previous month.

Joe Staton, head of market dynamics at GfK, said, “Looking at how consumers see the wider economy developing over the next 12 months, we are 18 points lower this month than in March 2015.

“So, despite good economic headlines about low inflation, interest rates and prices in the shops, concerns about Brexit and the ongoing Eurozone crisis appear to be hitting home.”

The Consumer Confidence Index for March was carried out by GfK on behalf of the European Commission.

Separate reports have shown continued optimism from consumers, but there are concerns about the possibility of an exit from the EU. These concerns are influencing homeowners and hopeful homebuyers. They are keeping a close watch on the possibility of changes occurring in the mortgage lending market as they seek to remortgage or buy a home while interest rates are low, for some experts believe a tightening in lending could likely occur as the referendum draws nearer.

The UK will decide in a referendum on 23 June whether to remain a member of the European Union or to leave.