Consumer Confidence Ticks Up in August

Ann Arbor, MI, Aug. 29, 2008--Consumer confidence rose to its highest level in five months in August, according to the Reuters/University of Michigan Surveys of Consumers.

The final index of confidence for August rose to 63.0 -- its highest since 69.5 in March. It was up from 61.2 in July and mid-August's preliminary reading of 61.7.

Economists had expected a reading of 62.0.

The index, which dates back to 1952, remains low overall, however, and still points to a difficult outlook for consumers.

"Overall, the data still indicate that the pace of growth in consumer spending will fall back toward zero in the fourth quarter of 2008 and the first quarter of 2009," the Surveys of Consumers said in its report.

The report added that for the third consecutive month, the majority of consumers reported their financial situation had worsened.