NEW YORK, Aug 26 - The following are comments from currency and debt market analysts on Tuesday after the Conference Board reported its U.S. consumer confidence index rose to 81.3 in August from a revised 77 in July. But the U.S. Commerce Department reported July new single family home sales fell 2.9 percent to 1.165 million from 1.200 million in June. The department revised the rise in June new home sales to up 8.3 percent from up 4.7 pct.
JOSEPH LAVORGNA, SENIOR U.S. ECONOMIST, DEUTSCHE BANK SECURITIES. NEW YORK:
"Both the housing sales and consumer confidence were a little bit better than expected. In housing, the plunge in rates earlier in the year continues to keep sales strong. Confidence is turning up as expected. "The figures are relatively neutral, broadly within expectations. But if you believe the economic fundamentals are still turning up the Treasury market will continue to see yields moving higher."
MARK VITNER, SENIOR ECONOMIST, WACHOVIA SECURITIES, CHARLOTTE, NORTH CAROLINA:
"The headline number is a little better than expected, but when you look at the details it's hard to get excited about it when consumers are still very uncomfortable with current economic conditions and a very large number are saying jobs are hard to get. That tends to suggest the unemployment rate did not decline in August or even rose. But it's not keeping people from spending because historically the unemployment rate is relatively low. We're expecting stronger GDP figures, but consumers are still waiting for the proof."
KEN MAYLAND, PRESIDENT, CLEARVIEW ECONOMICS LLC, PEPPER PIKE, OHIO:
"Adding a couple of trillion dollars of market cap can do wonders for consumer confidence. From mid March to late summer, the rise of stock prices has lifted the market capitalization or total wealth of Americans by nearly two trillion dollars. At one level the confidence report is reflecting some restoration of stock market wealth, and more broadly the confidence numbers are reflecting what everybody is clearly anticipating; an improvement in the economy's prospects at all levels. "The durable goods numbers were quite strong...layoffs are down, the labor markets are looking better. This housing number is down a touch but at an extremely strong level." DAVID LITTMANN, CHIEF ECONOMIST, COMERICA BANK, DETROIT Consumer confidence: Overall, it's clear from leading indicators, and it will be ratified in coincident indicators like consumer confidence, that the economy is accelerating here. Home sales: They're down a little bit. That's the fallout from rising mortgage rates. But sales are still fairly strong. There has to be a handoff here between the year-long surge in the housing market and the rest of the consumer and business sector. Without that, there will be a lapse in economic growth. But we see that handoff is taking place. The industrial economy is starting to come back, we're seeing capital spending helped by improved incentives in tax laws, and the trade sector is coming back.//