US consumer confidence shows rise

A housing market slowdown is expected to hurt consumers

Confidence among US consumers unexpectedly rebounded in January, figures show, despite mounting fears the economy is headed for a slowdown.

The upbeat data comes as the White House is crafting measures to boost the world's largest economy.

The Reuters/University of Michigan preliminary index of consumer sentiment rose to 80.5 in January, from December's 75.5 reading.

December's reading was the lowest in more than two years.

Economists had been expecting a figure of 74.5.

"Consumers are very cautious. I don't see the improved sentiment reading as heralding a big consumer spending turnaround," said Josh Stiles, strategist at IDEAglobal in New York.

The US economy is widely expected to slow sharply this year, with some economists talking about the risk of a recession.

A slump in the US housing market and problems in financial markets are expected to lead to a slowdown in consumer spending.