According to the latest data released, the consumer confidence index in the UK has risen to 115 points, which is its highest since the survey began in November 2010 and indicates that the economy is recording a stable recovery.

The Lloyds Bank Spending Power Report for the month of August showed that the index continued to rise and reached 115 points backed by strong growth in the housing market. The factors affecting consumer confidence including UK employment situation and financial situation both eased during the month. The rise in consumer confidence is expected to push up the consumer spending in the UK, which already accounts for about 60 per cent of GDP.

Patrick Foley, chief economist at Lloyds Bank, said, “With spending on essentials still relatively stable overall and positive coverage of the improving economic backdrop, the rise in confidence is not surprising, but very encouraging. It 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 report showed that the consumer confidence in the country has continued to rise as economy recovers from its slowdown.