Luxury shoppers are back: Consumer confidence at two-year high across UK

 

Fears of rising interest rates and lack of pay rises has not stopped the UK’s consumers feeling the most positive in more than two years but the amount they have to spend on non-essentials is waning.

Consumer confidence has now spread out from the South-east into the north of the UK, according to the latest Deloitte Consumer Confidence Tracker.

But according to supermarket Asda’s latest income tracker, the average household had £171 a week in discretionary income in June 2014 – just £1 more than a year ago.

This comes as inflation spiked to 1.9 per cent in June, well ahead of the 0.7 per cent rise in average pay packets.

Deloitte said confidence is at its highest level since its Tracker began and said “confidence in the North has increased significantly this quarter, suggesting that a recovery is gathering pace across the country.”

More people have jobs, or have started new jobs, while low inflation has meant their money is going further. In the coming months consumers said they plan to splash out on eating out, short holiday breaks and big ticket electrical goods.

Ben Perkins, head of consumer business research, said: “Combined with the rising confidence in household disposable income, consumers are edging away from the defensive spending habits they adopted during the recessionary years and spending more on the things they enjoy.”

Asda’s chief executive Andy Clarke said the recovery remained a “postcode lot-tery” with families in the Midlands experiencing stronger growth in disposable incomes – what is left after paying essential bills like energy food and housing – than the rest of the country.

In the East and West Midlands, recovering manufacturing fortunes meant families were £7 and £6 better off respectively, although those in London were just £1 better off and Scotland families saw disposable incomes stagnate. The South-west were £1 worse off year on year

Mr Clarke said: “This month’s income tracker is a tale of two halves. Whilst we are seeing the ninth successive month of growth, this growth is slowing. And over the past month families have not felt the same level of  benefit in their household budgets that the positive headlines about economic recovery that we’ve seen in recent weeks would suggest.

“Whilst some regions continue to step on in their economic recovery – such as London and the Midlands – others, such as the South-west have actually seen a step back this quarter, indicating that recovery still remains a postcode lottery.”

Deloitte also said that more than half of the working adults surveyed do not expect their salaries to increase and many plan to repay more debt and save in the coming quarter.

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before
'Queer saint' Peter Watson left his mark on British culture by bankrolling artworld giants

'Queer saint' who bankrolled artworld giants

British culture owes a huge debt to Peter Watson, says Michael Prodger
Pushkin Prizes: Unusual exchange programme aims to bring countries together through culture

Pushkin Prizes brings countries together

Ten Scottish schoolchildren and their Russian peers attended a creative writing workshop in the Highlands this week
14 best kids' hoodies

14 best kids' hoodies

Don't get caught out by that wind on the beach. Zip them up in a lightweight top to see them through summer to autumn
Robert Fisk in Abu Dhabi: The acceptable face of the Emirates

The acceptable face of the Emirates

Has Abu Dhabi found a way to blend petrodollars with principles, asks Robert Fisk