Consumer confidence is up - according to the Lloyds Bank Consumer Sentiment Index, Britons are feeling more optimistic then ever about the nation's economic outlook.
The Index has reached a new high of 115 - 10 points higher than it was at the start of the year. According to the accompanying survey, consumers are feeling less negative about the state of the public finances, and the jobs market.
Confidence surrounding the housing market also buoyed the Index, as Government schemes such as Help to Buy and cheap mortgages have encouraged more property sales.
It is not all good news however. Sentiment remains unchanged when it comes to investors' personal finances. Record low Bank of England Base Rate at 0.5% has meant that for four and a half years, savers have earned next to nothing on their cash. Although mortgage rates have fallen, the cost of living has risen as gas and electricity bills were hiked. Rising fuel prices have had an impact on utility bills and the price of petrol, and food inflation has been rife.
Patrick Foley, chief economist at Lloyds Bank, said with spending on essentials remaining relatively stable overall and positive coverage of the improving economic backdrop, the rise in the Index was not surprising, but is very encouraging.
He continued: "Increasing consumer sentiment may in time embolden consumers to spend, so helping to underpin the wider economic recovery. In turn, such spending would further help improve the outlook for growth and jobs.”
The Lloyds Bank Consumer Sentiment Index was first launched in November 2010.
