Consumer morale was less negative than expected last month but remained in the doldrums as people fretted about the current economic climate, a survey showed on Friday.

However, there are signs that people are becoming less pessimistic about the year ahead. The GfK/NOP consumer sentiment index rose to -35 in February from -37 in January, above analysts' forecasts for a deterioration to -39, which would have matched the series low set last July.

The survey suggests the economic downturn is continuing to weigh on sentiment and is likely to reinforce expectations the Bank of England will cut borrowing costs again next week from the current record low of one per cent.

The index measuring people's perception of the economic climate over the last 12 months deteriorated to -82, its worst since records started in 1982. Britain is suffering its first recession since the early 1990s as a global shortage of credit has hit businesses and consumers hard.

However, Friday's survey suggested people are becoming more hopeful about the future, possibly encouraged by record low interest rates, which have reduced monthly mortgage payments.