Spending by consumers rocketed by 4.2% between July and September, according to figures that fly in the face of gloomier economic news recently.

The Barclaycard Quarterly Spend Report revealed the biggest increase in spending since 2011 and also reported that more than half of adults feel confident about their financial situation.

But the report also noted concerns about the rising cost of living and concluded this could be holding back a full-blown recovery in the UK economy.

Analysts say inflation is consistently outstripping wage increases, meaning everyday items are becoming less affordable and households are having to cut back.

Barclaycard also identified a trend for shopping for “value”, which partly explains the rise in popularity of discount supermarket chains Aldi and Lidl.

“There is a new era of financial awareness among consumers, and the search for value appears to be entrenched,” said Chris Wood, managing director of Barclaycard.

“The full benefits of the economic recovery are still to be felt by many, and this ‘new normal’ looks set to continue. Most consumers are still feeling the pinch, so they’re holding back spending and, while they do, we’re yet to see a full-blown recovery.”