Consumer confidence helps boost economy

? Key pillars of the U.S. economy are getting stronger.

The best consumer confidence reading since September 2008’s financial meltdown and bullish earnings reports this week from companies ranging from Whirlpool to UPS show increasing demand and a rebound gathering steam. Americans are even feeling a bit better about the job market.

The biggest remaining worry? Housing. That market has shown signs of strengthening this spring because of government subsidies but remains on fragile ground and could actually start to weaken once the rebates expire.

Shipping giant UPS said health care companies are sending more medical devices and high-tech firms more equipment as business picks up. Cosmetic maker Estee Lauder Cos. said more consumers were buying pricey products, including a $130-an-ounce skin cream.

The Consumer Confidence Index rose in April to 57.9, according to The Conference Board, a private research group based in New York. That’s up from a revised 52.3 in March. Economists surveyed by Thomson Reuters expected 53.5.

The April reading, released Tuesday, is the highest since September 2008’s 61.4, before the index headed into freefall following the bankruptcy of Lehman Brothers and ensuing cascade of financial collapse. Still, the reading is well below the 90 that’s considered healthy.

More consumers in the survey said they planned to buy autos or appliance, but plans to buy homes fell from March, suggesting the housing market remains uncertain and could be a drag on a robust economic recovery.

In fact, the Standard & Poor’s/Case-Shiller home price index, showed its first annual increase in more than three years. But the 0.6 percent gain posted in February was half the gain analysts had expected, and many of the metro markets showed declines.

“We find it hard to believe that consumption will be able to drive a sustained economic recovery when households are still depressed and house prices are heading south once again,” said Paul Dales, U.S. economist at Capital Economics.

According to the Standard & Poor’s/Case-Shiller home price index, 11 of the 20 cities showed declines. Nationally, home prices are up more than 3 percent from the bottom in May 2009, but still are 30 percent below the May 2006 peak.