Data from the YouGov’s Household Economic Activity Tracker (HEAT) index highlighted that the index climbed 2½ points to 100.4 in March, the highest reading in almost three years. The HEAT index has risen 6% since the start of the year.

This is the first time that the index has been above 100 since June 2010. According to the report, a reading above 100 indicates that more households think their economic situation is getting better than getting worse.

British workers are also feeling more secure about their jobs and they are ‘unlikely’ to be laid off, with 59% feeling a sense of job security.

Dominic White, chief European economist at ASR, said: “British households appear to be getting a bit more optimistic about the prospects for UK business, and this goes hand in hand with a feeling of greater job security among workers.

“For many households, finances are still tight, but if business activity continues to improve and job security holds steady then this could provide households with the confidence they need to start spending a bit more, which is crucial to getting the economy moving again.”

UK households also expect business activity to speed up, with employees highlighting that they felt that business activity had picked up in the last month or so.

There is also a level of optimism over the coming financial year, with 37% of respondents expecting business activity to be higher in a year’s time, compared with just 14% who think it will be lower.