The firm’s monthly Consumer Confidence Index records confidence about the economy, household spending, employment and house prices.

The figures are especially surprising as it was reported this week that Britain had fallen back into a recession.

In March, confidence increased from 44 up to 53, although still 23 points below of the average figure which is 76.

The proportion of people who believed the current economic situation was bad declined as did the proportion who believed there were not many jobs available.

The proportion of people who believe the economy is currently good increased as well as the proportion who thought it would be better in six months time increased by seven points.

Consumers remained cautious about making major purchases of household goods.

Robert Gardner, Nationwide chief economist, said: “The consumer confidence index has been fairly volatile from month to month, but since reaching an all time low in September last year, the trend has generally been to increased confidence.

“It may be that general decline in inflation from the recent highs of 5.2 per cent last September to 3.5 per cent in March has helped to support spending power and therefore lift consumers’ spirits over the past six months.”

However, Mr Gardner said this confidence was likely to be shortlived as inflation falls slowly towards two per cent.