The level of confidence among British consumers hit a five-year high in September, but the feel-good factor that swept the country was not shared by London-based shoppers, a survey released on Monday (17 October) showed.

According to data published by consultancy firm Deloitte, consumer confidence rose by three percentage points from the previous quarter last month, marking the largest increase since late 2014 and bringing consumer confidence to its highest level since 2011.

However, consumers in London, where most voted against leaving the European Union at June's referendum, were not as buoyant, as consumer sentiment in the capital fell by three percentage points.

"The Brexit vote may be weighing on a region in which 60% of the population voted to remain (in the EU) and where reliance on financial services, migration and capital flows are especially strong," said Ian Stewart, chief economist at Deloitte.

The survey, questioning more than 3,000 people in mid-September, also showed that while retail sales continued the growth into the final quarter of 2016, consumers could see their spending power under threat starting from next year.

Citing rising inflation and the political uncertainty surrounding Britain's negotiations with the EU, Deloitte warned that consumer spending could slow down in 2017.

Official data on retail sales is due out on Thursday (20 October) and analysts expect the figures will show growth slowed in September, as a rise in prices affects the amount of goods shoppers are able to purchase.

Meanwhile, a separate survey released by the EY Item Club warned Britain is facing four years of subdued economic growth as it negotiates to extricate itself from the EU. The think tank said it expects the economy to expand 1.9% this year, in line with its July forecast, but predicts growth to slow to just 0.8% in 2017.

Consumers' pockets are expected to take a hit over the coming months as the weak pound pushes inflation up to 2.6% next year, the report added.