The result is part of the monthly Nationwide Consumer Confidence Index which questions 1,000 people on their confidence in the economy and employment.

The current index position is 47, just two points below the reading a year ago.

The figure is still far less than the long-running average of 76 points.

Robert Gardner, Nationwide’s chief economist, said: “After ending 2011 close to all time lows, consumer confidence staged a modest recovery at the start of 2012.

“A number of other economic indicators have also surprised and been more positive than expected in recent weeks, which may be an indication that underlying economic conditions are not as weak as feared.”

For the Expectations Index, the number of people believing the economic situation would be better in six months time rose as did the number of people believing the employment situation would be better.

Looking ahead, Mr Gardner said: “Renewed hope that the UK will avoid a double-dip recession may support sentiment, especially since the downward trend in inflation is set to continue through 2012.

“But with UK recovery likely to remain weak in the first half of the year, a significant and sustained rise in consumer confidence remains unlikely in the near term.”