Partner Article

North East consumers regaining confidence

Consumer confidence in the North East has climbed in the first quarter of 2014, driven by a rise in the sale of ‘big ticket’ items.

Research from Deloitte shows North east consumers’ confidence in their level of disposable income increased by 14 percentage points in Q1 2014 compared with the previous quarter - the fastest since the tracker began.

The region spent less on holidays over the quarter than in the same period the year before, bucking a national trend which saw overall UK holiday spending rise significantly.

The research suggested consumer spending showed no signs of slowing into the second quarter as households become more confident about their discretionary spending, as house values were percieved to be rising and taxation falling.

Ian Stewart, chief economist at Deloitte said: “Following a succession of good news about the UK economy, the strong growth in overall confidence this quarter points to consumers being much more positive and suggests the recovery is gathering pace.

“Lower inflation, easier access to credit, historically low interest rates and an improving job market have all helped bolster consumers’ spending power.”

Paul Feechan, senior partner and consumer business expert in the North East, concluded: “With less uncertainty and a further fall in inflation and unemployment, real pay is finally rising.

“This is creating more sustainable conditions for robust growth in consumer spending in the next couple of years. However, although consumers have been more upbeat in Q1 2014, the possibility that interest rates could rise remains a concern for them.”

This was posted in Bdaily's Members' News section by Tom Keighley .