In a word, "yes". Keep Calm and Carry On was the order of the day, in the words of the famous poster (though that specific poster wasn't actually used at the time it did reflect widely shared sentiment). London (and other cities) continued functioning as normally as possible during the Blitz as shown in the short film of November 1940 London Can Take It, in which Londoners take shelter during overnight raids before emerging to resume daily life - "shops are open as usual" says the narrator over footage of premises with bomb damage and smashed windows "... in fact some of them are more open than usual". The Blitz Spirit was celebrated, a stoic determination to cope with adversity. From Juliet Gardiner's Wartime: Britain 1939-1945, London resident Dorothy Barton recounts a December morning following a raid, going to her office building:

"Suddenly a policeman rushed in and said 'Everybody out, there's an unexploded bomb in the backyard'. Pausing only to grab my handbag and the ledgers I was responsible for, I made my way to the end of the street again, where all the staff had gathered with various bits of office equipment in their arms. After a while, someone in another firm nearby offered us space in their building, so we made out way there.

It was a bitterly cold day, with a smattering of snow on the ground, and there was no gas, water or electricity in the City, which meant no heating and no cups of tea. We worked in our temporary office with all our outdoor clothes on."

Of course things weren't quite so simple as merely Carrying On. London Can Take It was a propaganda film produced by the Ministry of Information, aimed at (and successful in) swaying public opinion in the United States (as well as being distributed in slightly edited form as Britain Can Take It within the UK). There was massive disruption - thousands killed and injured, many more made homeless, transport and public services disrupted etc., to say there was no fear or despair was not true at all. Though the Blitz saw many acts, large and small, of bravery, kindness, community spirit etc., it also saw looting and other criminality, racial and class tensions, psychological as well as physical casualties. There has been much work since looking at the period more critically, spearheaded by Angus Calder's Myth of the Blitz of 1991, giving us a much more complete picture (although the more straightforward Blitz Spirit continues to be evoked in popular imagination, not least in the post-2000 resurgence of the Keep Calm and Carry On poster).

As Daniel Todman puts it in Britain's War

"There was no great unified national experience of bombing, but the Blitz was an event to which national meanings were ascribed. At the time, undoubtedly the most important was that the home front could take it. So far from cracking under the German bombardment, Britons had joined together to resist the onslaught. Civilians were in the front line. Civil defence workers were heroes. Morale remained unbroken. This version of the Blitz was assiduously promoted by the government, the BBC, the newsreel companies and almost all newspapers. [...] This was plainly not everybody's experience of the Blitz, and assertions from ministers and journalists about universal cheerfulness and high morale aroused considerably antagonism at the time. Yet - particularly when told in less bombastic tones than Churchill's - there was enough in this account of home-front resilience to strike a chord in a country that was busily mythologising the deliverance of Dunkirk and the defiance of invasion."

Todman concludes his chapter on the Blitz with a poignant reminder of the suffering caused, too easily obscured by the portrayal of Britain "taking it". Hilda and Jim Curran were bombed out of the East End of London, Hilda and their two children moving to Cambridge while Jim remained in London for his work; after a visit to Cambridge, Hilda wrote to Jim once he returned to London:

"Well dear I felt awful after you had gone home and to make things worse I had a scene with the kiddies when they went to bed. Poor Bobby he sobbed and sobbed because he wanted his Daddy it made your heart ache to hear him. Anyhow I managed to cuddle him off to sleep but all through the night I could hear him sob in his sleep. Patsy cried too she wanted you all, especially her Nannie and Grandad. I tell you were were a lot of weeping willies. It's lovely having you come but the going back is so awful. I could kick myself for breaking down like I do but for the life of me I can't control myself however hard I try to keep a stiff upper lip."

Meanwhile Jim's firm had been bombed out, leaving him out of work. As Todman says:

"Home destroyed, separated by evacuation, wage-earner put out of work, struggling to keep going by themselves without assistance from the state, and trying to put a brave face on things because other people had it worse: for those whose lives were caught up in the maelstrom of bombing, this was closer to the true texture of the Blitz."