The FTSE 100 index of Britain's leading shares has closed at the highest level in over a year, leading to hopes that the UK may be climbing out of the recession.

The index closed above the key 5,000 level for the first time since September 26th on Tuesday and has now recovered almost 44% from the six-year low that was reached in March this year.

The gains follow a raft of good news stories that have been released about the economy recently, such as a rise in house prices, permanent and temporary employment and an increase in consumer confidence.

Small business owners will hope that the positive news encourages financial institutions to increase their lending which, despite the historic low interest rate, has been limited.