CONSUMERS in the North-East are the gloomiest across the UK about employment opportunities over the next six months, according to a survey.

More than half of those questioned in the Nationwide Building Society's quarterly consumer confidence index said they were not feeling positive about the availability of jobs in the region.

Despite this, confidence about the current economic situation increased "dramatically", with 49 per cent of consumers feeling positive about the North-East economy.

Overall confidence lifted 13 points to 92 in the second quarter of the year - up from a low of 79 points in the first quarter, but still below the UK average of 95 points, according to the report.

The report said: "Looking forward six months, consumers in the North-East are also upbeat.

"The number of people confident about the future economic situation rose from 13 per cent in quarter one to 15 per cent in quarter two, taking it just above the UK average of 13 per cent."

However, Rosemary Callender, Nationwide's consumer confidence spokesperson, warned that interest rates could dampen confidence.

"The interest rate rise in May, has done little to subdue confidence levels, but looking forward, higher interest rates are likely to dampen sentiment as increases in debt repayment begin to impact on spending."

The index is compiled by Nationwide in partnership with market research group TNS and some 168 people across the North-East were questioned between April 1 and June 30.