Prosper: Politics, Stock Market Hit Consumer Confidence

Hit by notable political and economic events, including the Brexit vote and subsequent stock market reaction, consumer confidence plunged in early July, according to Prosper Insights & Analytics.

Just over 46% of consumers reported that they were confident or very confident in the prospects for a strong economy in early June but that proportion fell to 41.1% in July, the market research firm reported. That proportion also was down from 45.2% in July 2015.

The proportion of consumers who reported that they were focusing purchasing on what they need rather than what they want increased to 42.9% in July from 41.8% in June while 38.7% said they were more practical in their purchasing versus 37.2% last month.

According to Prosper, about the same proportion of consumers month over month said they believe the economy will rebound, at 35.3%, while fewer thought it would not, at 27% from about 30% last month. The proportion that gained was the uncertain category, now at 37.4% from just over 35% in June.