Improvements in housing and consumer confidence add to recovery laudations

New figures on consumer confidence and new statements that recovery is closer while the recession is over. Well, maybe following the principle that the thoughts and words have their energy that can be eventually incarnated government and other people are making additional efforts as a part of their work to draw us out of the crisis. Anyway, as some people think Tuesday reports about gains in U.S. housing prices and consumer confidence can be viewed as a proof of that the economy is emerging from the longest recession since the 1930s.

According to a closely watched index U.S. single-family home prices rose for the second month in a row in June with the increase in consumer confidence in August. Besides, the appointment of Ben Bernanke to another term as a chairman of the Federal Reserve also inspired comfort in the investors. They think that the move will implicate consistent approach to monetary policy in the years ahead.

"The recession appears to be over, with consumer attitudes lagging behind broad economic developments," said Steven Wood, chief economist at Insight Economics in Danville, California.

While consumer confidence climbed to a reading of 54.1 in August from 47.4 in July some analysts warned not to get carried away.

"Confidence remains well below its historical average of 95 and it has not even regained the level of 61 seen before the collapse of Lehman almost a year ago," said Paul Dales, U.S. economist at Capital Economics in Toronto.

Meantime, labor market which is considered as a sticking point to recovery still remains weak. The Federal Reserve itself admits that current improvements are looking like a "jobless recovery," with the unemployment rate staying high long after growth resumes.