Consumer confidence rises in July

Americans' confidence in the economy continues its roller-coaster ride.

As their short-term outlook on jobs and income eased somewhat, US consumers' confidence rose slightly in July, according to a monthly survey out on Tuesday, but confidence levels still remain weak overall.

The Conference Board's Con-sumer Confidence Index edged up to 59.5 in July, from a revised 57.6 in June that marked a seven-month low in the measure. Economists had expected the July figure to fall to 56.

"Overall, consumers remain apprehensive about the future, but some of the concern expressed last month has abated," said Lynn Franco, director of The Conference Board Consumer Research Center.

A reading of 90 indicates a healthy economy on the index, which measures how Americans feel about business conditions, the job market and the next six months.

It has not approached that level since the recession began in December 2007, and a shift of less than five points is generally discarded by economists as insignificant.

Economists carefully monitor consumer confidence because consumer spending accounts for 70 per cent of economic activity.

The increase is "a bit bizarre given that all the other measures of confidence have recently fallen," said Paul Dales, senior US economist with Capital Economics. Last week, a Thomson Reuters/ University of Michigan survey that also tracks consumer confidence showed the measure fell in July to its lowest level in more than two years.

"Nonetheless, it remains at a level consistent with only modest consumption growth," he said.

- AP