US consumer confidence rose more than expected in August after two consecutive months of declines, buoyed by a jump in recovery hopes for the coming months, the Conference Board said today.
The business research firm said its consumer confidence index climbed to 54.1 in August from an upwardly revised 47.4 in July.
The rebound in confidence was stronger than the 47.9 reading that most analysts had expected. The index had hit an eight-month peak of 54.8 in May.
'Consumer confidence, which had posted back-to-back monthly declines, appears to be back on the mend,' said Lynn Franco, research director at the Conference Board.
The present situation index increased slightly, mainly due to consumers' assessment of the job market. The expectations index improved sharply, to its highest level since December 2007.
'Consumers were more upbeat in their short-term outlook for both the economy and the job market in August, but only slightly more upbeat in their income expectations. And, as long as earnings continue to weigh heavily on consumers' minds, spending is likely to remain constrained,' the Conference Board cautioned.
More evidence of stabilising housing crisis
Separate figures today show that US home prices fell in June but at a sharply slower pace. The key survey of major cities provided fresh evidence the housing crisis is stabilising.
The S&P/Case-Shiller index of home prices in 20 metropolitan areas showed home prices fell 15.4% in June from a year ago, compared with a steeper 17.1% annual decline in May.
Most analysts had expected the decline in prices to accelerate to 17.9% year-over-year.
A 10-city index also showed a moderation in falling prices, with a reading of a 15.1% decline in June following 16.8% the preceding month.
Today's report followed last week's robust data on existing-home sales, which posted record gains in July that set a four-month rally for the first time in five years.
The National Association of Realtors on Friday reported existing-home sales surged 7.2% in July to a seasonally adjusted annual rate of 5.24 million units in July from a pace of 4.89 million in June.
