WRAPUP 2-UK consumers more upbeat; M&S profit tops hopes

* M&S H1 profit 298 mln stg vs forecast 285 mln

* Next Q3 sales top expectations, raises FY guidance

* Housebuilders Taylor Wimpey, Redrow say market improving

* Nationwide consumer morale index highest since Apr 2008

* M&S, Next, Taylor Wimpey, Redrow shares rise strongly (Adds builders, company, analyst comments, shares)

By Mark Potter and James Davey

LONDON, Nov 4 (Reuters) - Britons' confidence about economic recovery appears to be building, though companies remain wary and are still relying heavily on cost cutting to boost profits.

Clothing retailers Marks & Spencer (MKS.L) and Next (NXT.L) beat profit and sales forecasts respectively on Wednesday, while builders Taylor Wimpey (TW.L) and Redrow (RDW.L) highlighted a pick up in the housing market, lifting shares in all four firms.

But the companies also said their performance was flattered by extremely weak trading in the same time last year following the collapse of U.S. bank Lehman Brothers, and were worried about taxes rising next year to address rising government debt.