Consumer confidence rose in October, as the fall in petrol prices and lower energy usage takes pressure of budgets.
The Lloyds Spending Power Report saw confidence on the high street up five points to 151, the second highest since the index began.
There was also a positive mood about the UK’s economic situation, with an eight-point rise to 283, despite recent warnings of uncertainty.
Lower petrol prices and a run of warmer weather has resulted in less pressure on household budgets, Lloyds said.
Patrick Foley, chief economist at Lloyds Bank, said: “Consumers remain in a positive mood, with the pressure on budgets from essential spending lifting a little.
“Though risks around the economic outlook have risen somewhat, emerging signs of a modest strengthening in real wage growth should help support the UK recovery.”
Despite the overall positive sentiment, nationwide views on the country’s current financial position remained negative at -36 per cent. This was up 22 percentage points from last year.
Residents of Yorkshire and Humber were the most negative at -53 per cent.
By contrast, national views on personal finances were positive at 13 per cent.
Opinion on future spending was down one point to -4 per cent, while more than half of those surveyed expected no change in their discretionary income levels in the next six months.