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Career ladder confidence grows in North East

People in the North East are more confident about their disposable income and job prospects than this time a year ago, according to the latest consumer survey by leading analysts at Deloitte.

Deloitte has published its latest Consumer Tracker, which ranks confidence across a number of key economic areas as a positive or negative percentage.

In the North East, sentiment around job opportunities and career progression is improving, from a -13% level in 2012, up to -5% in Q3 2013. Out of all the regions, only London saw greater levels of improvement.

Meanwhile consumers’ confidence about their level of disposable income has improved by two per cent as the index rose to -24% in Q3 2013, from -26% in Q3 2012. Despite this, a higher proportion of people in the region believe their job security is worsening (net change from -4% in Q3 2012 to -9% in Q3 2013).

Paul Feechan, office senior business partner, at Deloitte in Newcastle, said: “Overall confidence is growing, it’s just a little slower than we’d hoped in the North East. Less downward pressure on incomes, combined with renewed economic optimism and an improving housing market make for a story of gradually recovering confidence – notwithstanding the fact that the level of real incomes is continuing to fall.”

Nationally however confidence is at its highest since the Deloitte Consumer Tracker began in Q3 2011. While sentiment remains in negative territory, the index rose to -25% in Q3 2013, from -43% in Q3 2011.

That said, 8% of consumers in the North East report that someone in their household has started a new job in the past three months, compared to 12% this time last year (Q3 2012). This is compared to a national improvement of 1%.

Ian Stewart, chief economist at Deloitte, said: “Official data shows earnings rose by 0.7% over the last year, far slower than the rise in the index of inflation and taxes at 2.2%. Therefore, the squeeze on consumer spending power continues. Far more consumers are pessimistic about incomes than are optimistic and our index of disposable income remains in negative territory.”

This was posted in Bdaily's Members' News section by Deloitte LLP .