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According to the Nationwide Consumer Confidence index, UK consumers are now far more optimistic about their financial future. The research shows that last months consumer optimism was higher than it had been for the previous six months.

In May the index hit 53, up from 51 in April and the highest reading since November 2008. This two-point increase in May followed an eight-point jump in April.

Although the figures suggest a buoyant consumer outlook, the Nationwide’s chief economist Martin Gahbauer has said: “It is likely that confidence will remain fragile.”

Despite improved consumer attitude for the future, the current situation is still a matter of concern for many people.

Mr Gahbauer said that: “While some reports suggest tentative signs of a slowing in the pace of economic decline, it is important to remember that a number of sectors are continuing to contract and any recovery is likely to be sluggish.”

“What is clear from our findings is that while consumers remain pessimistic about the present situation, they appear to be much more confident about the future than they were at the beginning of the year,” he added.

Economic analysts predict that the economy will continue to contract for some time. While the overall length of the recession remains uncertain, it remains the priority for the majority of the British public to watch the pennies and arrange debt management where necessary.

Reflecting the present situation, only six per cent of respondents said they thought the economy was in good shape, with 77 per cent replying that they thought the economy was in difficulty.

According to official figures the UK economy shrank by 1.9 per cent in the first three months of 2009, the biggest contraction in three decades.