South East has highest consumer confidence in UK

June 26, 2015, 10:00 AM GMT+0

  • London has second highest – Wales and North East have lowest

  • Economic optimism in “Northern Powerhouse” regions “almost two years” behind consumer confidence in the south

  • National consumer confidence falls 1.6 points in June

Consumer confidence has dipped over the last month, the latest figures from market research firm YouGov and the Centre for Economics and Business Research show. The YouGov/Cebr Consumer Confidence Index stands at 112.1 in June, down from 113.7 in May. Seven of the eight measures that make up the index have fallen in June with one other – home value over the past month – remaining level.

New analysis from YouGov shows the extent of the regional discrepancies in consumer confidence across Britain. Consumers in the South East have the greatest economic optimism – 6.5 points ahead of the national average, closely followed by London (5.7 points above the national average) and the East of England (4.4 points).

Wales and the North East have the lowest levels of consumer confidence. Wales falls -7.7 points behind the national average with the North East -8.4 points back. Consumer confidence the North East is 23 months behind the South East – the last time economic optimism in the South East was at the level currently experienced in the North East was March 2013.

The analysis also shows the long-term discrepancy between London and the South East with the Government’s so-called “Northern Powerhouse” regions of the North West and Yorkshire & Humber. Over the past five years consumer confidence in the regions in Southern England has consistently been higher than those in Northern England. The combined consumer confidence levels of the North West and Yorkshire & Humber are currently at a level last seen in London and the South East almost two years ago (August 2013).

Stephen Harmston, Head of YouGov Reports: ‘The discrepancy in consumer confidence between the regions is startling. While many people in the South and East of England are reaping the rewards of growth, those in the North, Wales and Scotland are struggling for economic momentum. Many consumers in these areas have not seen that much of a recovery and as such are still waiting to feel the full benefits of the recovery. This is shown by the fact that consumer confidence in London and the South East are years ahead of some regions of the UK.’

Scott Corfe, Associate Director at the Centre for Economics and Business Research: ‘London and the South East are still the key drivers of economic growth in the UK, with regions in the North lagging behind the capital’s commuter belt. Although the Government is trying to bridge such disparities with initiatives such as the so-called “Northern Powerhouse” it will have its work cut out to bring economic optimism into line with the South East given the economy around London is surging forwards.’

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