New research has revealed that consumer confidence in the UK has risen to the highest levels seen in more than two years.
However, despite the improvement, four out of ten households still believe they will become worse off over the next 12 months.
The results come from the Markit Household Financial Index and whilst 40% of those polled said they expected their finances to continue to deteriorate, with 29% anticipating an improvement, it is the best result for some time. In fact, Brits have not been this optimistic since the early part of 2010.
There was a distinct split in the results, with the most upbeat answers coming from professionals in areas such as IT and telecommunications. At the opposite end of the spectrum, workers from the health, social care and education sector were the gloomiest about their short term prospects.
The study is based on the responses of 1,500 individuals from all over Britain and revealed that for many, inflation has been once again brought under the spotlight, with rising costs in September cited by an increasing number.
The senior economist from Markit, Tim Moore, suggested that the rise in living costs during September could have primarily been due to rising fuel prices. Three quarters of those who took part in the survey said they had noticed the cost of living had once again risen during September.
However, Mr Moore insisted that the results showed there had been a ‘gradual easing’ on the financial pressures facing many households. He added that this trend was in keeping with an overall pattern, which had been identified previously.
The Markit survey final figure rose to 38.4, the highest number seen for a considerable length of time. Any figure higher than 50 is given to mean economic improvement.