Britons are treating themselves to furniture, clothing and meals out again as the economy recovers, a new report has found. A study of people's spending habits shows people are buying luxury items amid falling prices and rising wages. Spending in restaurants has increased by 17 per cent in the last 12 months, while entertainment is up 12 per cent as people visit the theatre, cinema, museums and amusement parks. Spending in restaurants has increased by 17 per cent in the last 12 months, a new report has revealed . Analysis showed spending on women's clothes grew by 6 per cent over the last year, and 4 per cent for men . Electronics spend has risen 7 per cent in the last year, as consumers buy expensive phones and tablet computers, while furniture has jumped by 5 per cent, with more people sprucing up their homes. It comes on the same day that official figures are expected to show Britain has entered its first period of deflation since 1960. Inflation is expected to fall into negative territory after the price of fuel, food and energy bills plummeted in recent months. Low grocery and household bills has given family finances a boost, encouraging people to spend more. Barclaycard, which processes almost half of credit and debt transactions in the UK, found consumers had used this opportunity to update their wardrobes. Analysis showed spending on women's clothes grew by 6 per cent over the last year, and 4 per cent for men's clothing. A separate survey of 2,000 respondents by Barclaycard also found people were feeling more confident about their finances. A fifth of people are delaying a major purchase until after the General Election, a study shows. A survey found over half of people were concerned about how the outcome will affect their personal finances. Almost half of these said they were worried about the impact of the election – irrelevant of who wins. People said they had delayed buying various 'big ticket' items until after May 7, including family holidays and furniture. It follows concerns that a new Government could lead to a flood of new financial and fiscal policies, affecting their family finances or job security . The findings emerged in a survey of 2,000 people commissioned by Barclaycard. Valerie Soranno Keating, of Barclaycard, said: 'The forthcoming UK General Election is also causing some uncertainty. 'But overall, this report shows that the UK consumer is now firmly feeling the impact of the recovery and they are voting to enjoy their new-found fiscal flexibility.' Three-quarters of people do not worry about living within their means each month, while two-thirds say they are now happy to spend money on 'non-essential items'. Half of people who expect to increase their spending over the next few months say this was driven by a desire to treat themselves and others. Many said they had been 'cautious for a long time' but now want to splash out. Since the survey was last conducted three months ago, a higher proportion of Britons now have more confidence in global economies, their own job security and their personal finances. While people are increasingly eating meals out, most are not being reckless with their habits. Over a third say they never go to fine-dining restaurants and most prefer a traditional British pub. Howard Archer, of IHS Global Insight, said: 'When people feel better off, they are more prepared to go out to restaurants. 'The fall in petrol prices and muted food prices will give them a bit more discretionary income. 'Consumer confidence is at its highest level for about nine or ten years. 'Rather than delaying purchases in anticipation that prices will fall, I think a lot of consumers are taking advantage of the boost to their purchasing power and spending happily.' Valerie Soranno Keating, of Barclaycard, said: 'UK consumers are starting to feel more optimistic about both the economy and their own prospects, and this is feeding through into their shopping habits. 'Falling prices and a strengthening economy have given people the confidence to spend more freely and they have taken the opportunity to treat themselves, with spend on discretionary items rising as consumers worry less about covering the cost of essentials.' Low grocery and household bills has given family finances a boost, encouraging people to spend more . But she said the financial crisis was still at the forefront of people's minds and families remained cautious about spending beyond their means, like they did in the run-up to the recession in 2008. 'While the data shows a generally very positive picture, consumers still remember the lessons of the prolonged downturn. 'The 'new normal' – fiscal prudence, a desire to balance the budget and an ongoing search for value – remains a feature of the shopping landscape', she said. The study found the General Election had created some uncertainty, with over half of people saying they were concerned about the impact the outcome could have on their personal finances. One in five are postponing a major purchase, such as a family holiday, until after the May 7 election is decided.
Consumers are buying luxury items amid falling prices and rising wages .
Restaurants have seen spending increase by 17 per cent in the past year .
Figures expected to show UK is now in first period of deflation since 1960 .