Confidence has dropped mostly among young voters aged 16-29, down 13 points, who were predominantly in the "remain" camp and who have concerns over jobs and opportunities to travel and work in the EU. From an income perspective, the biggest drop in confidence is a fall of 16 points among households with income levels of £25,000-£49,999 ($32,000 – $64,300).
The U.K. has yet to even start the withdrawal process from the EU. Prime Minister Cameron has said it is up to the next party leader and prime minister to trigger Article 50 of the Lisbon Treaty which sets the Brexit wheels in motion. This will start up to two years of negotiations with the EU about any future relationship with the U.K but the entire process of disentangling the U.K. from the EU could take many years.
Thanos Vamvakidis, head of G10 FX BofA Merrill Lynch Global Research, told CNBC on Friday that the U.K. had entered a period of "wait and see mode" and was heading for recession.
"We are seeing a (confidence shock) earlier than we had expected. It seems that investors and consumers are already in a wait and see mode and this could continue. It's very likely that the U.K. will experience a recession," he told CNBC Europe's "Squawk Box."
"We are going to have a new 'normal' and we don't know how it will look like and it will take time. They (the government) cannot activate Article 50 any time soon because they don't have the staff, they don't have a plan and they don't have a strategy and even after they activate it, this will be a very long process. So this is not a one-off shock, this is the beginning of a long process and we don't know what will be the outcome," he said.
"Even if you're optimistic about what will be at the end of it, for now, you're just waiting for the outcome….(and) uncertainty is the worst thing that you can have in this fragile market."
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