Turnaround seen in consumer confidence

Falling oil prices and a recovering stock market have halted the precipitous drop in consumer confidence prevalent throughout 2008, according to new data. The RBC Consumer Attitudes and Spending by Households Index, compiled by RBC Capital Markets of New York, increased to 33.8 this month, rebounding from an all-time low of 14.6 in July. The Expectations Index, which measures consumers' economic outlook, rose 50 points this month to a reading of -4.7. The Current Conditions Index added 6.2 points, rising to 36.7, compared with 30.5 last month. The Investment Index, which measures Americans' attitudes regarding both stock and real estate investments during the month, increased to 42.6. in August, compared with 36.1 in June. However, the Jobs Index, which measures Americans' perception of their job security, slipped to 85.8 from 89.1 last month. "Consumer sentiment bounced back due to a moderation in the prices of gasoline and oil, as well as a modest rebound in the equity markets,” T.J. Marta, economic and fixed-income strategist for RBC Capital Markets, said in a statement. "However, the ongoing decline in house prices, continued tight credit conditions and soft jobs-market indicate that while sentiment might be in the process of bottoming at a very depressed level, it has not likely begun an upward trend.” The indexes were compiled from a sample of 1,002 U.S. adults polled between July 31 and August 4 by Ipsos-Reid Public Affairs, a Toronto-based research company.