Consumer confidence in the UK rose in January 2010 as the economy started to exit the worse recession on record, according to the Nationwide Building Society.

The consumer confidence index went up by three points in January 2010 from 73 in December 2009, which is almost double the 39 recorded in January 2009.

Martin Gahbauer, chief economist at Nationwide, said: “ Positive signs from the manufacturing sector and labour market may have helped boost confidence during January, but confidence is likely to remain fragile for some months to come. Heavy discounting on the high street and government driven incentives such as lower VAT, the car scrappage scheme and the stamp duty holiday combined to keep the Spending Index buoyant throughout much of 2009. The removal of these initiatives may now be causing consumers to reconsider parting with their cash at a time of year when we would normally expect.”

There was an increase to 36% in the belief that the future economic and employment situation would be better in six months time, in comparison with 34% in December 2009 and just 17% in January 2009. The number of those believing there will be more jobs in the future increased by 4% in January to 29% – the highest percentage since June 2008.