This is why consumer confidence continued to drop in Yorkshire

Confidence is now at its lowest point since the second quarter of 2017 and 6 per cent lower than in the first quarter of 2018.

The analysis, based on the response of consumers between March 23 and 26, was driven by significant drops in confidence related to levels of debt, which dropped by 9 per cent to -10 per cent, and job opportunities and progression, which fell by 5 per cent to -11 per cent.

Nationally, consumer confidence grew marginally by one-percentage-point to -8 per cent, primarily through increased confidence with regards to levels of disposable income and job security, with these measures up five and one percentage-point, respectively.

Andrew Coticelli, partner and consumer business lead for Deloitte in Yorkshire, said: “Consumers in Yorkshire have slightly a more pessimistic outlook than those nationally, continuing the trend from 2018.

“However, that overall bounce in consumer sentiment comes against a backdrop of heightened uncertainty around Brexit during the survey period in late March.

“Consumers also faced headwinds from a slowing global economy while at home housing activity has softened and consumer credit is less easy to come by. Despite the deluge of bad news consumer confidence has held up, fuelled by rising real incomes, a buoyant jobs market and ultra-low mortgage costs.

“Earnings growth has now outstripped inflation for 13 consecutive months while unemployment is at its lowest level since 1975.

“Mortgage rates remain close to all-time lows. The key question for the UK consumer is whether growing corporate nervousness will trigger a squeeze on pay and jobs in the second half of the year.”