Consumer confidence has now recovered all the ground lost - and more - in an attack of nerves after the Bank of England raised interest rates in August.
Nationwide's consumer confidence index has risen sharply for a second month i n October, with the s trongest one-month increase for a year and is now back to where it was in January.
Confidence in future prospects for jobs and the economy generally rose more sharply than in any month since the building society started the index in May, 2004 - though more because fewer people are gloomy about the outlook than in any increase in the n umber of outright optimists.
T he likelihood of another interest rate increase tomorrow, appears to have had no impact at all.
C onfidence in the present state of the economy has rebounded less dramatically, but still improved for the second month running and at a quicker pace than in September.
Only 17 per cent of those interviewed for the survey described the present economic situation as "bad", fewer than in any month since September last year.
Half of them said they think there are many jobs available at present and only 23 per cent "not many" or few.
Nevertheless, this widespread confidence is not reflected in attitudes to spending.
Nationwide said its spending index tracking consumers' inclination to buy major items and large household goods, fell in October to its lowest level since December, 2004.
Stuart Bernau, executive director at Nationwide, said: "Most market commentators seem to feel an interest rate rise is a foregone conclusion.
"Yet despite the expectations of a rise, consumer confidence has returned to the levels seen early this year.
"Consumers appear more confident in jobs and the economy, but this has not translated into spend-ing on the high street.
"This reluctance may give the (Bank of England's interest-setting committee) some comfort that inflation will not be further fuelled by a spending boom in spite of the welcome decrease in petrol prices."
But there was no such reassurance from answers to questions about house prices. The survey showed a central expectation that they will rise by 3.9 per cent over the next six months.