US consumer confidence jumped the most in more than three years in April as the recent stock market rally dispelled gloom about the economy, but house prices in the largest US cities tumbled further in February, writes Alan Rappeport in New York.
The 18.6 per cent drop in house prices followed a 19 per cent year-on-year decline in January. However, for the first time in 16 months the rate of decline eased from the prior month, offering some hope that the property market could be beginning to bottom out. Combined, the results add to the case that the US economy could be digging itself out of the worst recession since the Great Depression.
The Conference Board said yesterday that consumers were starting to feel better about the economy, with its index exceeding the most optimistic predictions by rising to 39.2 from 26.9 the previous month.