Golden August and boosts spirits and economy in 'Olympic bounce'

Evidence of an "Olympic bounce" in consumer confidence, as Team GB's record gold medal haul lifted national spirits, is expected this week despite the general weakness of the economy.

GFK/NOP's closely watched index has been stuck deep in recession territory for more than a year, remaining at minus-29 for the past three months. And consumers are also back in recession after the Office for National Statistics reported a second successive quarter of falling household spending between April and June.

But the Olympic effect – along with some long-awaited better weather – is set to lift the mood with a slight rise expected by most economists.

Investec economist Victoria Clarke said: "We tend to the view that August's reading may actually show a modest improvement, with the London 2012 Olympics games delivering a feel-good factor and with the widely touted success of the Games helping to deliver a dose of national pride."