U.S. consumer confidence rises to 57.9 in April, highest since September 2008

Anne D'Innocenzio, The Associated Press NEW YORK, N.Y. - Americans' confidence in the economy rose in April to its highest level since September 2008, just as the financial crisis escalated, according to a private research group.

The upbeat reading, combined with bullish earnings reports this week from companies ranging from Whirlpool Corp. to UPS Inc., offers more hope the economic rebound is gathering steam. Meanwhile, a key home price index reported its first annual increase in more than three years, though it's too early to say the housing market is recovering.

The U.S. Conference Board, a private research group based in New York, said Tuesday that its consumer confidence index increased to 57.9, up from a revised 52.3 in March. The April reading is the highest since September 2008's 61.4. That was when the financial crisis intensified with the collapse of Lehman Brothers, sending confidence into freefall the following month. Economists surveyed by Thomson Reuters were expecting a reading of 53.5.

The index — which measures how shoppers feel about business conditions, the job market and the next six months — had been recovering fitfully since hitting an all-time low of 25.3 in February 2009. Economists watch the number closely because consumer spending including health care and other major items, accounts for about 70 per cent of U.S. economic activity.

April's reading is still far from what's considered healthy. A reading above 90 indicates the economy is on solid footing; above 100 signals strong growth. Still, the monthly survey of consumers showed that consumers' current and short-term concerns about jobs and the overall economy are easing.

Canada consumers get the blues, accountants brighten

(Reuters) - Consumer confidence fell in April in Canada, but the nation's accountants displayed optimism about the economy in the first quarter that approaches levels not seen since 2007, surveys on Tuesday showed. The Conference Board of Canada said its consumer confidence index was down a sharp 7.8 points to 84.8 this month.

"This last month was a surprise to see it come down," said Pedro Antunes, director of national and provincial forecasts at the Conference Board. "We think it may have something to do with the fact that there's a lot of news about interest rates and lending rates coming up."

Antunes said the market consensus that interest rates will rise this year has also spurred concern about a correction in Canada's booming housing market. Changes in mortgage rules and revised sales-tax regimes in Ontario and British Columbia have added to the concern about falling demand.

"Households are very heavily invested in their homes and if they feel there may be some correction to housing prices that may have played a role in the numbers," he said.

The quarterly Business Monitor survey done in March by the Canadian Institute of Chartered Accountants and Royal Bank of Canada, however, did not reflect the concern. The survey seeks the opinions of executive chartered accountants who have first-hand knowledge of the financial performance of Canadian companies.

Sixty-one percent of executive chartered accountants surveyed said they were optimistic about the economy over the next 12 months, up from the 48 percent who expressed optimism in the final quarter of 2009. The figure was in stark contrast to the 4 percent who were optimistic in the first quarter of 2009.

"The latest findings clearly underscore a growing comfort with the Canadian economy," Kevin Dancey, president and chief executive of the Canadian Institute of Chartered Accountants.