Visa Europe’sUK Expenditure Index, which takes card spending data and adjusts it for a variety of factors to create a like-for-like comparison of consumer spending, showed consumer spending up 0.8% on August 2012.
Neil Parish MP, who at PMQs yesterday said a combination "good weather, our deficit reduction and our control of public spending" has given confidence to business and individuals, welcomed Visa's report.
“These figures are just the latest encouraging statistics for our economy and show that the public are feeling optimistic about the future," he said.
"The retail and service sectors are flourishing. Even the Shadow Chancellor has had to admit that the economy is on the mend, much as it pained him to do so."
Parish added: "We still have a long way to go but the good news on jobs, growth and now consumer spending all show that this Government is right on track and the UK is well on the way to economic recovery.”
Christopher Pincher, MP for Tamworth said the data "suggests confidence is returning to the retail sector just as it is returning to manufacturing, construction and exports".
He added: "It is also encouraging that the high street seems also to be benefiting from the upswing in sales and not just the online and mail order purchasing channels.
"After a long period in which consumers retrenched and paid down debt – and that is still ongoing – it seems that people are now willing to spend a little more on themselves with the clothing and footwear and hotel and restaurant sectors registering positive growth.
"We must look closely to see how quickly other positive news in the housing market feeds into household goods purchasing as that sector still stubbornly refuses to budge. But retailer, producers and the Chancellor should be pleased with these figures."
August proved to be a good month for UK household spending, with clothing retailers and restaurants among the principal beneficiaries.
Rising 1.6% on the month, growth has now been registered six times so far this calendar year.
Paul Smith, Senior Economist at Markit, said:
"2013 is rapidly turning out to be a much better year than many probably dared to expect."
He added: “Higher spending volumes are intrinsically linked to the recent strengthening in the UK economic environment. Workplace activity is rising and job security is steadily improving, providing the basis for a strong upturn in consumer confidence and spending recovery."