Consumer confidence appears to be waning, despite figures showing household spending grew at its fastest rate for three years earlier this summer.

The Office for National Statistics (ONS) said household expenditure between April and June increased by 1.1 per cent, helping economic growth to push ahead 0.9 per cent.

But consumer confidence fell last month as five interest rate rises in ten months affected household budgets, according to a separate study by research company GfK Martin Hamblin.

The poll of more than 2,000 people found them less likely to make a major purchase now than a month ago and more likely to save instead. This followed the news on Wednesday that banks approved 20 per cent fewer mortgages last month, giving weight to the belief that the housing boom was at an end.

Analysts said the Bank of England was unlikely to raise interest rates again until November as it gauged the impact of previous rises.

The ONS confirmed estimates last month that GDP growth in the UK during the three months to June was 3.7 per cent higher than a year ago - the fastest annual rate for nearly four years.

Household expenditure accounted for part of the rise, but there were also a 1.4 per cent rise in investment and a one per cent increase in government spending.

David Kern, economic advisor to the British Chambers of Commerce said the figures did not reveal "a raging boom that requires a sharp policy reaction".