Oil price fall lifts US consumers

The recent drop in oil prices from record highs helped ease fuel worries

Lower petrol prices helped boost US consumer sentiment in August, according to the latest Conference Board survey.

The research body's Consumer Confidence Index rose to 56.9, from 51.9 in July. Analysts had forecast a rise to 53.

But while the surge in sentiment came as oil prices fell from record highs, shoppers remained worried about their current situation and the jobs market.

The figures are closely watched as consumer spending accounts for two-thirds of all US economic activity.

But despite sentiment improving for the second month in a row, the index - which is based on responses from 5,000 US households - still remains about half the level it was at a year ago.

"Consumer confidence readings suggest that the economy remains stuck in neutral, but may be showing signs of improvement by early next year, said Lynn Franco, director of the Conference Board Consumer Research Center.

She added that while Americans appear to be worried about the current economic situation those worries - centred on the labour market and business conditions - are easing off.

Meanwhile, the board also found that consumers' expectations for coming months improved at their best rate since November 2005.

But Ms Franco said: "Overall readings are still quite low by historical standards and it is still too early to tell if the worst is behind us."