Households said that they were increasingly committed to making large purchasese

Households grew more confident about their personal finances in the run-up to the general election and believe that the outlook for the economy has brightened, according to a closely watched survey.

In a sign that rising wages and record employment are buoying consumer sentiment, the GfK confidence index rose by three points to -11 this month. Although the index remained in negative territory, households said that they were feeling more optimistic about the future and increasingly committed to making large purchases.

The findings are a positive sign for the economy as consumer spending has been supporting economic demand while business investment and manufacturing have struggled to gain momentum. Household spending accounts for almost two thirds of national output.

Analysts expect the economy to contract in