Confidence among UK consumers is climbing dramatically, according to an index of shopper sentiment by Lloyds Bank.

The bank’s Spending Power Report hit 129, its highest mark since the survey began in November 2010.

The index level relating to confidence in the UK economy jumped 91 points compared with January 2013 and was up 12 points on last December.

Patrick Foley, chief economist at Lloyds Bank, said: “Continued gains in consumer sentiment reflect the ongoing improvements in the UK economic backdrop.

“If employment continues to firm and wages begin to rise, the greater capacity of consumers to undertake discretionary spending should place the recovery on a still-firmer footing.”