Americans' economic malaise not improved over last year

Americans' confidence in the economy improved slightly in August from July, but is still roughly as gloomy as a year ago.

The downbeat sentiment underscores the challenges ahead for the increasingly shaky recovery and for retailers, who are grappling with a weak start to back-to-school shopping. Worries are even growing about the critical holiday shopping season.

The Manhattan-based Conference Board, a private research group, said Tuesday that its Consumer Confidence Index rose to 53.5 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.

"The consumer is still struggling, and the prospects look like more of the same," said Ken Perkins, president of research firm RetailMetrics.

An index of 90 or more indicates a healthy economy. That level hasn't been approached since the recession began in December 2007.

The index - which measures how Americans feel about business conditions, the job market and the next six months - had been recovering fitfully since hitting an all-time low of 25.3 in February 2009.

There doesn't seem to be any catalyst in sight to get consumers to feel better any time soon. Home sales are plunging, and consumers are saving more and spending less as the unemployment rate remains stuck at almost 10 percent, all contributing to weak confidence.- AP