The Business Strategies study also revealed that people in the region, which covers East and West Sussex, are becoming increasingly optimistic about the economic outlook for the next 12 months.

Melanie Lansbury, Business Strategies managing economist and the author of the report, said: "In the UK as a whole, the 'feel good factor' has seen its biggest quarter-on-quarter boost since the end of the last recession in 1993.

"Falling interest rates and the lowest unemployment figures for nearly 20 years have helped ease people's concerns about the economy."

But, she warned, we may be seeing the calm before the storm.

"According to the latest monthly figures, unemployment has now begun to rise and if this continues, as expected, confidence will be hit."

The report found that in the South East those who are hopeful about the economic outlook are six points ahead of those who are not, some way short of the average 13 points for the UK as a whole.

Nevertheless, it marks a complete reversal of the situation three months ago when the pessimists had a six point lead over the optimists but still leaves a lot of ground to make up before getting back to the optimists' 18 point lead recorded a year ago.

Those in the region who are worried about job prospects are eight points ahead of those who are not. The UK average is a difference of four points.

Consumers were found to be becoming more confident about their ability to spend more over the coming year on major items.

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