Global investor confidence rose for a seventh month in a row in July, hitting the highest level in a year, U.S. financial services firm State Street said on Tuesday.

The global State Street Investor Confidence Index hit 119.4 this month from an upwardly revised 115.8 last month.

The index has been above 100 -- the level considered to be neutral -- for four consecutive months, coinciding with a stock market rally that began in March.

It has also increased every month since December.

The index results strongly reflect a building consensus that the global recession will wane more rapidly than many had feared, said Harvard Professor Ken Froot, a co-developer of the index.

Investors are now adding risk to their portfolios at an impressive rate, faster than we have seen in several years.

The confidence of North American institutional investors increased significantly to 120.5 from 113.8, while European investor confidence rose even more swiftly to 104.6 from 95.9.

The confidence of Asian investors rose as well, but only by 1.9 points to 94.2.

The data is extrapolated from movements in around $11.3 trillion of assets State Street holds as custodian for institutional investors.