Consumer confidence increased during August amid signs that the worst of the recession may be over, research shows today.

Nationwide said all of its measures of confidence rose, with people feeling upbeat for the first time since April.

But it was people's expectations of where the economy will be in six months that saw the biggest increase, rising by three points to 94 in the Nationwide index, continuing the general upward trend seen since the beginning of the year.

Only 21% of people think the economy will be worse in six months, down from 53% at the beginning of the year — 34% think it will be better.

Nationwide said there had been fewer large scale redundancy and insolvency announcements during the past few weeks, and this may have contributed to people feeling more upbeat during August.