U.S. Economy: Confidence Increases, House-Price Decline Slows

by Timothy R. Homan and Courtney Schlisserman

Confidence among American consumers improved in August for a second month as the surge in gasoline prices and the slide in home values abated.

The Conference Board’s confidence index rose to 56.9, higher than economists had forecast. House prices in 20 major cities declined at a slower pace for the fourth straight month in June, the S&P/Case-Shiller index showed. The Commerce Department said new-home sales reached a three-month high in July.

“A little bit of the gloom is lifting,” said Peter Kretzmer, a senior economist at Bank of America Corp. in New York who previously worked at both the Federal Reserve Bank of New York and the Fed Board in Washington.