UK consumer confidence rises slightly according to the latest Nationwide report.

Nationwide’s monthly Consumer Confidence Index has seen a slight growth in August, suggesting people are beginning to see a turning point out of the economic crisis.

The building society said that overall UK consumer confidence appears to be returning. Following a slight dip in July, people are feeling much more positive about the present situation according to the latest Consumer Confidence Index as it increased by 2 points, slowly creeping out of the ‘Stormy’ level on Nationwide’s confidence barometer.

However, the index also shows that people continue to remain cautious about making major purchases such as cars or a house. Those consumers believing it is a good time to bite the bullet fell from 35% in July to 33% in August.

Martin Gahbauer, Nationwide’s Chief Economist, said: “The moderate increase in confidence this month indicates that, for the first time since April, consumers are beginning to feel more positive not only about the future, but also about the present situation.

“It is likely that there will be a protracted recovery and we may see some volatility in the data as factors such as the rise in fuel duty affect sentiment.”

A report from the Recruitment and Employment Confederation (REC) and KPMG supports the evidence towards a growing positive attitude. It has shown a marginal increase in both permanent and temporary staff appointments during August – the first growth in permanent appointments in 17 months and in temporary jobs since July 2008.

Bernard Brown, Partner and Head of Business Services at KPMG, said that although this is positive news for the job market, he remains cautious: “It is too early to speculate whether this signals the end of the recession. One important factor to watch over the coming months will be how the public sector is coping with the financial and economic crisis.”