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Consumer confidence up in July, report says

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Confidence among U.S. consumers unexpectedly rose in July from an eight-month low, led by a rebound in the outlook for jobs in the next six months, Bloomberg reported.

The Conference Board’s index climbed to 59.5 from a revised 57.6 reading in June that was lower than previously estimated, according to figures the private research group released today. The index averaged 98 during the last economic expansion, which ended in December 2007.

Easing fuel prices could make households more comfortable spending in the second half of the year. At the same time, Federal Reserve Chairman Ben Bernanke told Congress earlier this month that unemployment remaining above 9 percent could restrain any recovery in consumer spending.

The report is at odds with the Thomson Reuters/University of Michigan preliminary index of consumer sentiment, which fell to a two-year low in July.

“People are feeling a little bit better now that falling gasoline prices have taken some of the burden off their pocketbook,” said Russell Price, senior economist at Ameriprise Financial Services Inc., in an interview with Bloomberg. “Despite the dire employment situation, people are feeling better about their own employment situation.”