A new report from Deloitte has indicated a "slow return" in consumer confidence, although a lack of disposable income is continuing to affect spending on leisure activities.

The group's latest Consumer Tracker has found that, despite the UK suffering from a double-dip, Britons are less pessimistic about job security and personal debt this quarter.

However, more than half (51 per cent) are downbeat about disposable income - compared to 49 per cent in the last quarter - and Deloitte said it was holding back "sustained" recovery.

Discretionary activities are expected to suffer as a result of consumer cutbacks, with 37 per cent saying they will spend less on going out to cinemas, theatres and concerts.

Deloitte chief economist Ian Stewart said: "For consumers to spend more, disposable incomes need to improve. Wages are unlikely to see much growth this year, so the big hope is that sharply lower inflation will support consumer spending power."

Nigel Wixcey, UK head of consumer business, added: "The consumer economy is looking a little brighter this year than last. This may not be saying much, but we are at least moving in the right direction."

Details: www.deloitte.co.uk