US consumer confidence rose to a three-month high in December, while prices in the hard-hit housing sector stalled in October, breaking a five-month string of gains.
The consumer confidence reading, released today, reinforced views that the economy is gradually recovering, and the October housing data from the widely watched Standard & Poor's/Case-Shiller indexes was seen as indicating the market is stabilising.
The Conference Board said its index of consumer attitudes rose to a reading of 52.9 in December from a revised 50.6 in November as job market pessimism eased and consumers' expectations reached a two-year high.
Despite some signs of optimism, consumers in December rated their present situation the worst since February 1983, according to the Conference Board. The US economy has been struggling to rebound from the worst recession in decades.
The consumer confidence index beat analysts' forecast of 52.5. Last month's reading was also revised higher from an originally reported 49.5.
The expectations index rose to 75.6 - the highest since December 2007 - from 70.3 in November.
Consumers' labour market assessment also showed some signs of improvement, with the 'jobs hard to get' index decreasing to 48.6 from 49.2. Consumers rated their present situation the worst since February 1983, with that index falling to 18.8 from 21.2.
The 'jobs plentiful' index also fell, dropping to 2.9 - also its lowest since February 1983 - from 3.1.
In housing, the S&P composite index of home prices in 20 metropolitan areas was flat in October, falling short of expectations for a rise of 0.2%. September's index was revised upward to a gain of 0.4%, from a previously reported 0.3%.
Only seven of the 20 cities in the composite index had month-over-month gains in prices in October, S&P said.
A sustained upturn in home prices is seen vital in the fledgling rebound in the hardest hit housing market since the Great Depression. There has been growing concern that record-high levels of foreclosures will mount even further and depress prices anew.
S&P said the annual rate of price declines improved, with the 20-city index dropping 7.3% from a downwardly revised 9.3% in September.
All 20 metropolitan areas and both the 20-city and 10-city indexes showed smaller rates of decline in October compared with September.
