UK consumer confidence hits lowest level since Brexit vote – business live

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

UK consumers are feeling at their gloomiest since the immediate aftermath of the EU referendum last June.

Pessimism is mounting over household finances, property prices, job security and business activity, according to a new survey from YouGov and the Centre for Economics and Business Research.

Their monthly index of consumer confidence dropped sharply this month, from 109.3 to just 106.6.

That’s the same level as immediately after the Brexit vote, and the first monthly fall since June 2017.

Christian Jaccarini, economist at the CEBR, says consumer confidence suffered a series of blows this month, including the Bank of England’s decision to raise interest rates to 0.5%.

The first interest rate hike in over a decade triggered fears that higher borrowing costs will compound the inflation-induced squeeze on household incomes.

Simultaneously, higher rates and a housing market in slowdown are warning signals for many homeowners, who fear house price growth may be further dampened. With these economic headwinds set to persist, and the OBR forecasting a weaker growth, households are understandably worried.”

With these storm clouds gathering, shoppers may be reluctant to splash out in the sales today. That would be a blow to retailers who are pinning their hopes on a good Black Friday.

Here’s the agenda

9am GMT: German IFO survey of business confidence

9.30am GMT: UK mortgage approvals numbers for October, from UK Finance (formerly the BBA)

2.45pm GMT: US manufacturing and services PMI reports