US consumer outlook remains shaky

The US housing crisis has damaged consumer confidence.

US consumer confidence has improved slightly in July, a survey suggests, though still represents a bleak view of the economy.

The Conference Board said that too much should not be read into the rise of its index, from 51 in June to 51.9.

The results showed no substantial improvement nor deterioration in the business or labour market, it said.

Consumer confidence has crumbled amid a credit squeeze and the housing crisis as well as higher food and fuel prices.

The monthly survey of 5,000 random US households is regarded as a gauge of consumer spending - which makes up two-thirds of the US economy.

'Careful watching'

While consumers remained grim about short-term prospects, the modest improvement in outlook provided some hope said Lynn Franco, director of The Conference Board Consumer Research Center.

The slight improvement "bears careful watching over the next few months," she added.

Separate data released on Tuesday suggested that US house prices fell by the steepest rate ever in May.

The Standard & Poor's/Case-Shiller index of house prices in 20 US cities fell by 15.8% compared with the same month a year ago.

Las Vegas was worst hit, with prices plunging 28.4%.