More consumers in Britain are now optimistic about British economy in the next 12 month despite stretched finances facing many households, according to a new survey released by the consumers group Which? on Sunday.

The survey showed that more consumers, 35 percent, now thought Britain's economy would get better in the next 12 months, compared to those, 29 percent, who think it will get worse.

The group said this is the first time and the highest rate consumers showing optimism since Which? launched our Consumer Insight Tracker in July 2012.

However this optimism is not filtering through to how consumers feel about their household finances, with levels of worry about rising food, fuel and energy prices still high.

The survey said that consumers are still most concerned about the cost of living, with the top worries remaining unchanged.

The survey found that some 81 percent worried about fuel, 79 percent about energy prices, and 73 percent, food prices.

Of the consumers taking part in the survey, nearly one third of consumers, 31 percent, were still finding it difficult or very difficult on their current household income.

One in five, 20 percent, consumers still feel insecure about their job security.

More than one in three, 36 percent, consumers are now cutting back spending on essential household items, involving 9.5 million households, compared to 25 percent last year.

"While this surge of optimism shows that consumers are feeling more positive about the future of the economy, it isn't filtering through to how people feel about their own personal financial situation, Which? executive director Richard Lloyd said.

"The recent heatwave and the arrival of a royal baby may have contributed to the public mood but there is still no let up for the millions of squeezed households who are struggling to get by.

"Unless things improve we won't see the all important rise in consumer spending that is so vital to the UK's economic recovery," Lloyd said.