People in the UK are more confident than ever about their household finances, according to the latest research.

Experian Business Strategies found that stock market slumps and the threat of war with Iraq had failed to dent spending.

The group questioned 6,024 people and found that 33% expected their personal finances to improve over the next year while 13% expected their finances to get worse.

Richard Holt, a director of Experian, said: "This buoyant optimism is reflected in the high proportion of those who think now is a good time to make a major purchase like a car, computer, TV set, washing machine, fridge or freezer."

He said that interest rates - at their lowest level for 38 years - had helped.

London gloom

But the research found that while people were confident about their own finances, they felt more concern about the state of the general economy.

Mr Holt said he thought the rise in spending will begin to slow over the next few months.

He predicted that spending this year would increase by 4.7% compared with 4.5% in 2001.

The survey found that the "feelgood factor" about the economy was highest in Wales.

But in London consumer confidence took a knock, leaving it behind the national average.