NEW YORK (AP) – Consumer confidence rebounded in August from a dip the previous month, with many Americans expressing a growing belief that better times lie ahead.

Meanwhile, the government Tuesday reported a surge in July for big-ticket items, and new-home sales dipped because of rising mortgage rates but still posted their second best month on record.

Taken together, the readings show that “people are beginning to think the problems we’re having now are temporary,” said Gary Thayer, chief economist at A.G. Edwards & Sons Inc. in St. Louis.

“People aren’t feeling really good about the economy, but that doesn’t stop them from taking advantage of bargains when they’re offered and spending the money they have.”

The Conference Board said its Consumer Confidence Index rose to 81.3 in August, up 4.3 points from a revised 77.0 in July. Analysts had expected a reading of 79.6 this month.

The generally positive reports failed to inspire investors on Wall Street. Major indexes spent most of the day in negative territory but ended the day with gains analysts attributed to technical factors.

The Dow Jones industrial average rose 23 points to 9,340. The Nasdaq composite index rose 6 points to 1,771. The Standard & Poor’s 500 index was up 3 points at 997.

Consumer confidence has been on the rise since posting steep declines during the Iraq war in February and March. The index lurched from a low of 61.4 in March to readings between 81 to 83 from April to June, and dropped to 77 last month.

Consumers surveyed in August were increasingly optimistic about the economy over the next six months, though their assessment of current conditions deteriorated for the fourth straight month.

“There’s no denying that the economy has picked up, but there’s also no denying that it’s very uneven and there are parts of the economy that are hurting,” said Mark Vitner, senior economist at Wachovia.

Also, the Commerce Department reported that manufacturers saw demand for durable goods – cars, appliances and other costly products expected to last at least three years – rise by a solid 1 percent in July.

The figures were in line with analysts’ expectations.

Separately, July sales of new homes fell 2.9 percent.

Historically low interest rates have boosted everything from the housing market to car sales.

AP-ES-08-26-03 1733EDT