US recovery gaining strength, data shows

SIGNS that the US recovery is beginning to take hold was boosted by further strong data yesterday.

Economists say the recovery signs will push the euro as low as $1.05 in the coming weeks.

Latest research shows US consumers are becoming more optimistic and that optimism is being reflected in higher demand for cars and other big ticket items.

Another key index, this time from the Conference Board for August confirms earlier pointers that the consumer, accounting for 75% of the US economy, is becoming very positive about prospects for the US.

Survey figures released yesterday shows consumer confidence shot up to 81.3 from 77 in July. The Conference Board said its findings demonstrated a growing belief that economic conditions are continuing to improve.

Among components of the overall index, the expectations index surged to 94.4 in August from 86.3

The welcome bounce back in confidence this month was entirely due to consumers’ increasing optimism about the future, said Lynn Franco, research director at the Conference Board.

She added, however, that continued optimism would depend on positive developments in the labour market. Separate figures showed that Americans bought more large items like cars and computers in July, pushing up durable goods orders by 1%.