British consumers least gloomy in a year-GfK survey

British consumer confidence recovered to its highest level in a year in April as gloom over the economic outlook dissipated to levels not seen since the start of the credit crunch, a survey showed on Thursday.

The GfK/NOP consumer confidence barometer rose three points to -27 this month, its highest level since April 2008 and its third consecutive monthly rise.

The sub-index measuring the economic outlook jumped 16 points to -15, its highest level since the credit squeeze first sent markets into a tailspin in August 2007.

The figures will provide some cheer to Prime Minister Gordon Brown as he struggles to boost his popularity and engineer a recovery before an election expected next Spring.

However, polling was conducted before the government's annual Budget last week and the compilers noted that responses were probably affected by usually sunny weather over the Easter holiday period.

"It is worth noting that fieldwork this month was carried out before the Budget announcement, so we're very interested to see how next month's results are affected by that," said GfK's Rachael Joy.

Doom-and-gloom headlines abounded last week after the government said the economy would contract this year at its fastest pace since 1945 and the budget deficit would soar to a record 12 percent of national income.

However, while unemployment continues to rise sharply, many Britons with stable jobs have been able to enjoy falling mortgage payments as interest rates have been slashed to a record low. Inflation in Britain is also starting to come down, helped by lower utility bills.