Consumer confidence stayed low in August but did not fall any further, according to a survey.

The Nationwide consumer confidence index remained flat in August at 52 – bringing a halt to the decline that began over a year ago.

Consumers’ views on the current economic situation continued to worsen in August with almost two thirds (65 per cent) of those questioned believing the current situation is bad compared to 61 per cent in July.

However, sentiment about the future economic situation improved slightly in August, with the percentage of those believing that the economic situation will be worse in six months’ time decreasing marginally from 60 per cent in July to 57 per cent in August.

Over a quarter (28 per cent) now think that the situation will be the same in six months’ time – three percentage points higher than last month (25 per cent).

Fionnuala Earley, Nationwide’s chief economist said: “Economic uncertainty continues to affect sentiment around spending and employment, but it seems that consumers are beginning to take a realistic view of the future and are factoring in the possibility of tougher times ahead.

“Lower petrol prices and more competitive new mortgage rates will be good news for the public. Team GB’s Olympic performance in Beijing may even have helped lift the nation’s spirits slightly this month.”

Consumers are still pessimistic about making large purchases such as a house or car. Over two-thirds (68 per cent) of those questioned believe now is a bad time to make a major purchase compared to 64 per cent in July and 49 per cent this time last year.