Economy

Consumer confidence rose more than expected in August, a possible sign Americans could be ready to start spending again. 

The index climbed to 69.6 in August, up from a 67.8 reading in July, which was the lowest since November, according to the Thomson Reuters/University of Michigan preliminary index of consumer sentiment released Friday.

The index is still well below the average 89 that was consistent in the five years before the recession began in December 2007. 

Consumer spending accounts for about 70 percent of the economy, and the lack of spending has been a drag on the recovery as Americans have opted to save more, with that savings rate hitting its highest level in more than a year. 

Consumer prices rose in July for the first time in several months behind higher energy prices, possibly easing worries that the sputtering economy will slip into a deflationary period.  

The Consumer Price Index, the government's most closely watched inflation measure, rose for the first time in four months by 0.3 percent, the biggest increase since September 2009, the Labor Department reported Friday. 

Analysts had expected a slightly smaller increase. Excluding volatile food and fuel costs, the core inflation rate increased 0.1 percent, as projected, possibly quieting talk about deflation.

Higher energy costs accounted for most of the increase as energy prices were up 2.6 percent last month, the first increase since January. Gas prices rose 4.6 percent and household gas and electricity prices also saw increases in July.

President George W. Bush is slated to speak at the Commercial Finance Association's (CFA) 66th Annual Convention that will run October 20 thru 22.  

Sen. Sherrod Brown (D-Ohio) has called on Congress to do something about China manipulating its currency after it was reported on Wednesday that the U.S. trade deficit with the Asian country widened to more than $26 billion in June, the largest imbalance since October 2008. 

By a two-to-one margin, expectations of certified public accountants (CPAs) serving C-suite executives have turned sharply negative on the economy as high unemployment and the tight credit market persist, according to a new poll by the American Institute of Certified Public Accountants (AICPA) and the University of North Carolina's Kenan-Flagler Business School. 

A report by NBTA shows global business travel dropped 8.8 percent in 2009, the worst decline since 9/11.

President Obama on Thursday announced the names of panelists who will participate in the Aug. 17 conference on the future of housing finance.

President Obama has touted GM's recovery as a success story as the economy struggles to create jobs. 

The Dow Jones tumbled 265 points on Wednesday amid growing worries that the world economy is weakening.

The Federal Reserve announced Wednesday that it will buy $18 billion worth of government debt in an effort to speed up the nation's slowing economic recovery. 

Although not a large amount, the Fed's aim is to lower rates on corporate debt and mortgages, which are already at record lows, as a possible avenue to convincing consumers and businesses to spend more. 

Policymakers are responding to a sputtering economic recovery and an unemployment rate mired at 9.5 percent. 

To boost the economic recovery, Fed officials said after Tuesday's Federal Open Market Committee meeting that they intend to keep the holdings on the central bank's balance sheet at around $2 trillion. The Fed will use the proceeds of maturing mortgage securities and invest them back into the Treasury market.