US citizens are feeling slightly more confident about the prospects for the country's economy, a new consumer sentiment barometer shows.

According to the Conference Board, its consumer confidence index rose to 56.9 in August, up from 51.9 in July and higher than the 53 predicted by analysts.

The monthly increase was the second recorded by the consumer research body, although the reading is still significantly down on this time last year, which has left some analysts feeling cautious.

However, Dana Saporta, an economist at Dresdner Kleinwort Securities, claims the barometer offers "a glimmer of hope" to consumers and puts the increase down to falls in prices at the gas pump.

Consumers still struggling despite this temporary respite may consider pay day loans to tide them over in the short-term.

Presidential candidates Barack Obama and John McCain are both hoping to ignite consumer confidence in the economy and polls show US citizens believe Obama is the best man for the job.

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