Consumer confidence increased three points to 1 in August, confirming that sentiment has stabilised in the last few months.

The GfK Consumer Confidence Index increased three points to 1 this month while all five measures used to calculate the overall score recorded increases.

GfK social research managing director Nick Moon said: “It looks as if we might be in a new period of relative stability for the Index. After several months of almost constant increase, the last four months have all seen the Index within a range of 0.

“And indeed the last five months have all been within a range of -1. There is no guarantee how long this stable position will last – a rush of good or bad economic news could set off a marked rise or fall, but things could stay like this for a while.”

But Moon urged caution. He added: “It is worth noting that the score for the two questions concerning the last 12 months rose by more than the two concerning the next 12 months, suggesting that people are reassessing the past more than feeling more hopeful about the future.”

The index revealed consumer confidence over their personal finance situation over the last 12 months jumped four points to -7, while over the next 12 months it jumped three points to 5.

Consumers said sentiment over the general economic situation over the last 12 months increased six points to -1, and over the next 12 months it rose two points to 11.

Consumers feeling confident about major purchases increased two points to -1, while those saving edged up one point to -8.