Budget shopping is set to be lasting legacy of cost-of-living crisis, according to Deloitte Consumer Tracker

The tracker concluded that Yorkshire shoppers are expected to keep a tight grip on their spending plans over the next quarter in response to an uncertain economic environment. The latest Deloitte Consumer Tracker revealed that consumer confidence in Yorkshire and the Humber rose by four percentage points, quarter to quarter, to -16 per cent.

Andrew Coticelli, tax partner and consumer business lead at Deloitte in Yorkshire, said: “The largest increase in confidence was around general health and wellbeing, followed by a rise in household disposable income, driven by consumers in the region seeing an increase in their income.

“The tracker also showed consumer spending fall very slightly compared with last quarter.

"Consumers in the region are spending less on essential items, especially utility bills which remain a concern for householders.

“However, consumers in the region did spend more on discretionary items, particularly clothing and footwear which could be due to the good weather we enjoyed in the last three months.

He added: “For the next three months, shoppers in Yorkshire and the Humber are expecting to tighten their purse strings with a decrease in spending for most categories.

"This is in contrast to the national sentiment of increased consumer spending for the next three months. This recessionary behaviour is resulting in savvier shopping; consumers are looking for the best deal.”

The movement away from mid-market brands to more budget-friendly options could become a permanent trend, according to the tracker.

The research, based on a survey of 3,387 UK adults in June, found consumer confidence levels remain below the long-term average, indicating that consumer finances are still under pressure. 

Céline Fenech, consumer insight lead at Deloitte, said: “A combination of five bank holidays, nationwide celebrations for the King’s Coronation and the hottest June on record may have encouraged some people to loosen the purse strings.

"However, the proportion of consumers adopting coping strategies to manage the rise in the cost-of-living has remained relatively consistent quarter-on-quarter.”

A third (31 per cent) of UK consumers said they would buy supermarket own-brand goods over the next three months, according to the survey. Nearly the same amount (29 per cent) plan to shop at cheaper supermarkets.

Consumers are also looking to retailers for help in managing costs, with 29 per cent of respondents hoping to take advantage of discounts and promotions.

Ms Fenech added: “Retailers are having to regain the trust of their consumers, offer more transparency on prices and prove the value of their products.”