U.S. consumer confidence edges up

American consumers' view of the U.S. economy improved slightly in August, the Conference Board reported Tuesday.

The board said its consumer confidence index rose to 53.5, up from a revised 51.0 in July.

Economists surveyed by Thomson Reuters had expected 50.5. The increase comes after two straight months of declines.

A reading of 90 or more indicates a healthy economy. The index — which measures consumers' confidence about business conditions, the job market and the next six months — hasn't reached that level since the recession began in December 2007.

Consumers indicated their employment prospects declined in August, with 45.7 per cent saying work was "hard to get" compared with 45.1 per cent who said that in July.

Alistair Bentley, an economist with TD Economics, said in a commentary the report "supports the view that spending growth will continue pressing forward — albeit slowly — in the months ahead."

Labour market conditions were an important element in the report, Bentley said, and the perception that jobs were harder to get in August was "another negative omen" ahead of the release on Friday of U.S. jobs numbers.

American unemployment now stands at 9.5 per cent.

Economists watch confidence closely because consumer spending accounts for about 70 per cent of U.S. economic activity and is critical to a strong rebound.