Signs of Economic Recovery

Home prices rose for a sixth straight month in July in the latest sign of a national sustainable housing market reocvery, while a jump in consumer confidence this month offered a harbinger that Americans are ready to loosen their spending. Six years after the collapse, economists believe that the housing market turned a corner. Consumer confidence is also on the rise, jumping to its highest level in seven months in September as Americans were more optimistic about the job market and income prospects, a private sector report showed yesterday. The Conference Board, an industry group, said its index of consumer attitudes rose to 70.3 from an upwardly revised 61.3 in August. It was the highest level since February and topped economists' expectations for 63, according to a Reuters poll. Two separate reports yestereday showed that home prices rose in July, though gains were not as strong as the previous month. That follows data that home resales and groundbreaking on new properties rose in August, while business sentiment among homebuilders hit a more than six-year high this month. The SA&P/Case Schiller composite index of 20 metropolitan areas rose 0.4% in July on a seasonally adjusted. Economists had expected a gain of 0.9% which would have matched June's advance. Case Schiller in one of the most closely watched barometers of housing reports.