The survey, a barometer of consumers’ spending intentions, shows a positive consumer sentiment balance of +11 per cent in the West Midlands, up significantly from the steep fall experienced in April of –16 and +2 per cent in January.

One-third (33 per cent) of consumers in the region said their household financial situation was better than a year ago, compared with 22 per cent who said it was worse.  

The findings suggest West Midlands consumers are demonstrating greater resilience than many other parts of the country, despite ongoing pressures on household budgets and concerns about the wider economy.

Financial wellbeing in the region also compares favourably with much of the UK, with nearly one-third (32 per cent) of consumers reporting they have money left for savings or discretionary spending after covering essential costs.  

While confidence has strengthened considerably across the region, consumers are not free from concern.

Rising household costs continue to weigh on many households, with 85 per cent of West Midlands consumers concerned about the rising cost of everyday essentials over the next 12 months. 

At the same time, employment concerns remain elevated with 44 per cent of consumers in the region worried about job security or future job prospects, slightly above the national average of 39 per cent. 

The West Midlands also stands out for its Christmas spending intentions. Around 31 per cent of consumers in the region expect to spend more on Christmas shopping and celebrations this year, compared with 17 per cent who expect to spend less. 

The research suggests households across the region are preparing for a relatively buoyant festive season, with confidence levels and spending intentions above the national average. 

Sarah Phillips, leader of Midlands Retail & Consumer Markets at PwC UK, said: "Confidence has made a striking comeback, with consumers in the West Midlands feeling more positive than they were earlier this year.

“Households are showing a greater willingness to spend as we approach the festive season, however optimism remains cautious rather than carefree. 

“Our findings suggest consumers continue to feel the pressure of rising everyday costs, and they’re concerned about future income, despite a stronger outlook than we saw in the spring.

“For retailers and consumer-facing businesses, the months ahead will be about responding to a consumer who is feeling more confident but is still carefully weighing up every spending decision. Getting the balance right will be key."