Consumer sentiment improves; Home prices rise

WASHINGTON (AP) — Consumer sentiment rose more than expected in August, and home prices in a closely watched index posted their first quarterly increase in three years, more signs that the economy is on the rebound.

The New York-based Conference Board says its Consumer Confidence index rose to 54.1 from an upwardly revised 47.4 in July. Economists surveyed by Thomson Reuters had expected a slight increase to 47.5. Still, the index is far below 90, the minimum level associated with a healthy economy.

Economists closely monitor confidence because consumer spending accounts for about 70 percent of U.S. economic activity. Consumer sentiment - fueled by signs the economy is stabilizing - has recovered a bit since hitting a record-low of 25.3 in February.

The Standard & Poor's/Case-Shiller's U.S. National Home Price Index released Tuesday rose nearly 3 percent from the first quarter to 133, though that reading is still down almost 15 percent from the second quarter last year.

Home prices are at levels not seen since early 2003. Prices have fallen 30 percent from the peak in the second quarter of 2006.