Consumer confidence jumps in Aug: report

NEW YORK (Reuters) - Consumer confidence recovered far more than expected in August as worries over inflation eased, the Conference Board said on Tuesday.

The Conference Board said its index measuring consumers' mood jumped to 56.9 this month from July's 51.9, reaching the highest level since May.

That was well above economists' expectations for a reading of 53.0, according to the median of their forecasts in a Reuters poll. The 79 forecasts ranged from 50.0 to 56.2.

The improvement in sentiment came during a month when oil prices retreated further from July's record highs but consumers' evaluation of their present situation and the job market deteriorated further.

The Conference Board, an industry group, said its gauge of inflation expectations fell to 6.7 percent from July's revised 7.5 percent. It hit a record high of 7.7 percent in May and June and was originally reported at 7.6 percent for July.

The overall consumer confidence index dates back to 1967. Its lowest reading ever was 43.2, which it hit in December 1974.

(Reporting by Burton Frierson, Editing by Chizu Nomiyama)