Reply #6: Consumer confidence posts modest rise

[ozymandius]

NEW YORK - A steady job market helped consumers overcome their concerns over high energy costs in July, unexpectedly lifting a barometer of consumer sentiment on Tuesday.

But there are warning signs the optimism may be short-lived as shoppers face a barrage of concerns from a cooling housing market and rising interest rates to war in the Middle East.

A report that showed another monthly decline in home sales, which have been a source of confidence for consumers, also stoked concerns about the economy. The decline, however, was less than analysts expected.

The National Association of Realtors reported Tuesday that sales of previously owned homes and condominiums dropped 1.3 percent in June to a seasonally adjusted annual rate of 6.62 million units; analysts had expected sales to fall to 6.60 million units. It was the eighth time in the past 10 months that sales slipped, while home prices edged up at the slowest pace in more than a decade.

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