Consumer confidence across the region rises to levels last hit in 2015

Consumer confidence across Yorkshire and the Humber has matched its highest level since 2015.

According to the Deloitte Consumer Tracker, which started in 2011, the latest report shows overall consumer confidence in the region stood at -4% in Q2 2018; equal to the high recorded in Q3 2015.

Across the UK, the quarterly survey of more than 3,000 consumers saw overall confidence also rise to -4%, the highest figure recorded by the Deloitte Consumer Tracker since it started in Q3 2011.

The research reveals confidence benefited from the effects of a strong labour market and positive wage growth, in addition to a feel-good factor caused by the start of the summer, a royal wedding and the opening stages of the 2018 World Cup.

Despite overall confidence remaining in negative territory, the record level of UK consumer confidence comes following a year of consistent growth from a low point of -10% in Q2 2017.

A strong labour market provided the foundations for the record level of optimism. Confidence in job security grew by two percentage points year-on-year to -4% in Q2, while confidence in job opportunities and career progression rose by seven points during the same period and is now in positive territory for the first time, at +1%.

Andrew Coticelli, partner and consumer business lead for Deloitte in Yorkshire, said: “Consumer confidence in the Yorkshire region has rallied against a backdrop of favourable economic fundamentals.

“Consumers are increasingly confident about opportunities in the jobs market and the security of work. With the unemployment rate at a 43-year low and skills shortages on the rise the stage looks set for gains in real wages.

“Buoyant consumer sentiment reflects a better picture in terms of jobs and wages. Add in warm weather, a royal wedding and a football World Cup, it’s not hard to see why consumer spirits have been given a lift.

“However, one only has to look at the headlines and the high street to see that challenges persist for the retail and casual dining sectors. We’re not out of the woods yet, but the continuation of the warm weather and England’s successful run in the World Cup will certainly help drive footfall and spending in the short term.”

The Consumer Tracker for Q2 2018 also revealed that confidence in disposable income has grown by 13 percentage points year-on-year, to -11% in Q2 2018. This has helped narrow the spending gap between essentials and discretionary categories for the first time since Q3 2016.

Seven out of the eight discretionary categories measured showed positive movement compared to the previous quarter.