SIGNS of a recovery in consumer confidence have emerged after spending rose at its fastest in nearly a year.

Figures from the Office for National Statistics showed household expenditure grew at 0.5% between July and September, driven by spending on goods.

Although the figures sparked hopes that the worst may be over for the embattled consumer it had little effect on the wider economy.

The ONS made no change to its estimate that the economy grew by 0.4% in the third quarter, although the year-on-year figure was revised to 1.7% from 1.6%.

Economist Gavin Redknap, at Standard Chartered, said the figures provided "at least some hope" that the worst may be over for consumers.

The annual rate was revised upwards due to growth in areas such as telecoms.

The figure is slightly above the 1.5% seen three months earlier, which was the slowest for 12 years.

The higher figure will provide a slight boost to Chancellor Gordon Brown, who earlier said economic growth would be between 3% and 3.5% this year.

He has indicated he recognises it will not reach this and has promised to update the prediction in his pre- Budget report next month.