Consumer confidence bounces back a bit

0 Comments | USA TODAY, August, 2008 | by Sue Kirchhoff

WASHINGTON -- Consumer confidence has rebounded slightly in August, though remaining subdued, as energy prices moderated and Americans became a bit less pessimistic about the longer-term outlook.

The New York-based Conference Board's consumer confidence index rose to 56.9 from 51.9 in July, which was a 16-year low. The increase was better than economists predicted. Still, sentiment is far from rosy.

"The economy remains stuck in neutral but may be showing signs of improvement by early next year," said Lynn Franco, director of the Conference Board Consumer Research Center.

While consumers were feeling a bit less gloomy, the Federal Reserve was reducing its growth forecast and betting a slowing economy would reduce inflationary pressures. According to...