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UK consumer confidence takes biggest drop since 1990

In July, UK consumer confidence took its sharpest decline in since 1990. Credit: PA Wire

UK consumer confidence fell to -12 in July from -1 in June - the biggest drop in 26 years, according to a poll by market researchers GfK.

The survey of 2,000 people found increased concerns about the economic outlook has dented the confidence of UK households and manufacturers.

The report found that people were on average more pessimistic about their finances, the economy, and whether or not now was a good time to make big-ticket purchases such as household appliances and furniture.

Consumers in post-Brexit Britain are reporting higher levels of concern this month. We’ve seen a very significant drop in confidence, as is clear from the fall in each of our key measures, with the biggest decrease occurring in the outlook for the general economic situation in the next 12 months.

– Joe Staton, head of market dynamics, GfK

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UK economy grew by 0.6% before Brexit vote

Credit: PA

The UK economy grew by 0.6% during the second quarter of 2016, official figures show.

It follows growth of 0.4% in the first quarter, the Office for National Statistics said.

The expansion in the run up to the EU referendum was driven by industrial production (2.1%) and services (0.5%), but held back by a contraction in construction (0.4%) and agriculture (1%).

The rise in GDP from April to June came in above economists' expectations of 0.5%.

GDP was estimated to have been 7.7% higher in the second quarter than the pre-economic downturn peak of the first quarter of 2008.

Speaking to ITV News, Chancellor Philip Hammond said the latest figures show the British economy is "fundamentally strong".

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Home builders call for action as Brexit affects markets

Since Britain voted to leave the EU, share prices of some of the country's biggest house builders have slumped.

Home builders want the government to expand the Help to Buy scheme in order to strengthen confidence if the economy slows.

Most economists believe a recession is on the horizon. However, some experts disagree, and insist that the much-talked about fall in house prices post-referendum is not entirely inevitable.

ITV News Business Editor Joel Hills reports:

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