Consumer confidence in the economy has risen dramatically following Tony Blair’s announcement that he is stepping down as Prime Minister.

Consumers were upbeat about finances in May and felt comfortable that things would continue to be good over the coming months, as Chancellor Gordon Brown prepares to take over the premiership.

Six in 10 people believe that there are many jobs available now and are optimistic about job availability in the future.

However, these sentiments do not seem to make them feel like spending – there was a three point fall in the number of people who think that now is a good time to buy major items such as a house or car.

Fionnuala Earley, Nationwide’s chief economist, said: “Higher interest rates have not affected consumers’ overall confidence, but they do seem to be having an impact on their willingness to spend.”