Consumer confidence soared to its highest level for two years last month and expectations were ahead of anything seen since records began.

The Nationwide Consumer Confidence Index increased by six points to 80 during February while the Expectations Index climbed six points to 115, more than double the level it was this time last year.

“Following a small dip at the end of 2009, consumers have started this year in a more optimistic fashion with February’s figures showing a surge in confidence in the present and future situation,” said Nationwide’s chief economist Martin Gahbauer.

He pointed out that a strong influencing factor behind the uplift was likely to be news that the UK had come out of its longest recession on record following six consecutive quarters of contraction beginning in 2008.

“Consumer confidence is crucial to a strong and sustainable recovery and, while confidence is likely to remain fragile for some months to come, the early signs do look positive.”

Not so good news was than on spending confidence, which, according to Nationwide, fell six percentage points to 39 per cent last month.

Mr Gahbauer said it could be that the fall was driven by the withdrawal of Government incentives such as the stamp duty holiday and lower VAT.