Consumer confidence in the UK rose for the second month in a row in December, suggesting cuts in interest rates and VAT are having an effect.

The consumer confidence index, published by GFK NOP, rose slightly but still remains near record lows at -33.

"The crucial question is whether the improvement in this index will be translated into activity on the high street during the January sales," said Rachel Joy from GFK NOP.

Figures from the Office for National Statistics also revealed total sales rose by 0.3% in November from the previous month, confounding many analysts' expectations.

The surprising figures have been attributed to early Christmas shopping and heavy discounting by retailers.

Sales for November were 0.4% lower than a year ago, the research added.