Britons wining and dining, indulging in nights out and partaking in leisure activities helped consumer spending in the three months to June hit its highest level in five years.
Figures released today based on credit and debit card transactions from Visa Europe show consumer spending rose 1.4 percent annually in the three months to June, the biggest increase since the second quarter of 2010.
"Prudent rather than excessive spending looks to be the order of the day, but people are definitely enjoying themselves," said Kevin Jenkins, an executive at Visa Europe.
"Dining and nights out, leisure trips and cultural treats all saw sharp increases in spending in June. In contrast, big summer discounts failed to lift spend on clothing."
Spending fell by a monthly 0.8 per cent in June, after a similar-sized decline in May - but the survey compilers said the monthly measure tended to be volatile.
The figures show Britons are feeling confident enough to flex their financial muscles, but they will compound concerns the UK economy is lopsided and remains too reliant on domestic demand, rather than export-led growth.