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Friday, July 25, 2008

Consumer confidence rebounds from 28-year low


Fri Jul 25, 9:58 AM ET

NEW YORK (Reuters) - U.S. consumer sentiment recovered from early 1980s lows in July as Americans received tax rebate checks from the government but remained pressured by high gasoline prices and falling home values.

he Reuters/University of Michigan Surveys of Consumers said its final index of confidence rose to 61.2 in July from 56.4 in June. Analyst forecasts had pointed to no change from last month.

Both perceptions of current economic conditions and expectations improved somewhat on the month. Yet the outlook was far from rosy, according to the survey.

"The data still indicate an ongoing downturn in spending that will last well into 2009," the report said.

Inflation expectations one year out held steady at 5.1 percent, while looking further out at a five-year horizon they dipped to 3.2 percent from 3.4 percent.

(Reporting by Pedro Nicolaci da Costa; Editing by James Dalgleish)

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