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How has Brexit impacted consumer confidence?

By Matt White

It's been a pretty hectic week or so for the UK. Not only did it vote to leave the European Union in a historic referendum, but prime minister David Cameron resigned from his post and the leader of the opposition Jeremy Corbyn is under fire to do the same.

While Australia has also faced its fair share of political ups and downs over recent years, it's also at the mercy of what's going on elsewhere in the world – including the UK. So, it's fair to say that consumer confidence is likely to have taken a slight hit from what's going on in the UK at the moment, but just how much?

The answer to this question could have a bearing on various aspects of the economy, including real estate in St Kilda. After all, the more hopeful people are about the future, the more likely it is that they will make big purchases such as property.

Surprisingly upbeat

The first ANZ-Roy Morgan Australian Consumer Confidence Index to have been released since Brexit was confirmed (28 June) stunned many experts . People on this side of the world seem to be relatively optimistic in the face of the problems that have been confronting the global markets.

Confidence was down by a marginal 1.7 per cent from a week earlier to reach a reading of 116.8. There had been a significant rise a week earlier, so this only partially offset some of this increase.

ANZ head of Australian economics Felicity Emmett said the Australian economy currently has "solid momentum", which has been reflected in confidence levels.

Predicting the future {bold}

It's the question on everyone's lips at the moment: what will Brexit mean for the future of the global economy? For the moment at least, it's not something anyone can really answer.

The Bank of England said that the British economy will need to adjust to whatever changes take place – and it's fairly safe to say that the rest of the world will have to do the same.

CBA chief economist Michael Blythe said the "debate about the implications for economies and financial markets is just beginning" and that it could be some time before the full impact is really felt. He warned of a "large" and "long-lasting" effect on the global markets, it's now just a case of exactly how much longer this will persist.

For help finding houses for sale in St Kilda, get in touch with the Ray White Port Phillip team.

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