Growth in British consumer spending in the quarter to June 30 reached a five year high according to data from Visa Europe.

Consumer spending rose 1.4 per cent year on year, the biggest increase Visa Europe has recorded since the second quarter of 2010.

The figures are calculated on credit card and debit card transactions.

“Prudent rather than excessive spending looks to be the order of the day, but people are definitely enjoying themselves,” said Visa Europe spokesman Kevin Jenkins.

“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.”

Visa Europe said spending fell by 0.8 per cent from May to June, after a similar drop in May, but cautioned the month to month figures are always volatile and the quarterly trend is more representative of spending patterns and sentiment.

With a new political stability in the UK consumer sentiment has risen and the Bank of England expects a rise in economic growth in the latter half of this year from the 0.4 per cent of the first quarter.