Sept. 11 (Bloomberg) -- Confidence among U.S. consumers probably gained in September for the first time in three months as the pace of job losses slowed and the economy showed signs of pulling out of the recession. The Reuters/University of Michigan preliminary index of consumer sentiment increased to 67.5 this month from 65.7 in August, according to the median estimate of 69 economists surveyed by Bloomberg News. Americans are starting to grow more upbeat after suffering the biggest destruction of wealth on record from a slump in stocks and home prices. That optimism probably won’t be matched by gains in consumer spending as households pay debts and rebuild their savings, economists say. “There has been better news from different parts of the economy and over time, once you start getting more and more good news it starts to stick,” said Jonathan Basile, an economist at Credit Suisse Holdings in New York. Still, “It’s not all green lights yet.” The report is due at 10 a.m. Washington time. Economists’ forecasts ranged from 64.5 to 71. The index has averaged 64.4 since the recession began in December 2007. During the expansion that started in November 2001, it averaged 89.1. A separate report at 8:30 a.m. may show import prices rose 1 percent in August, following the first drop in six months, according to a Bloomberg News survey. Prices of goods brought into the U.S. probably declined 16 percent from a year earlier, showing inflation pressures remain contained. Wholesale inventories may have declined in July at the slowest pace in six months as companies neared the end of a cycle of cuts to excess stockpiles, economists said. They predicted a 1 percent drop in wholesale inventories. Inventory Rebuilding Inventory rebuilding after record reductions in the first half of the year may contribute to a resumption of economic growth this quarter, economists predict. The economy will probably expand at a 2.9 percent annual pace in the period from July trough September, according to a Bloomberg Survey of economists taken Sept. 3 to Sept. 9. The Federal Reserve said Sept. 9 that 11 of its 12 regional banks reported signs of a stable or improving economy in July and August. Five districts, including San Francisco, home to the biggest regional economy, “mentioned signs of improvement,” the central bank said in its Beige Book business survey. Even so, “consumer spending remained soft in most districts,” according to the Fed report. “Loan demand was described as weak, and many districts reported that credit standards remained tight.” Gap, Limited Gap Inc., Limited Brands Inc. and American Eagle Outfitters Inc. on Sept. 3 reported smaller August sales declines than analysts had forecast. Gap, which also operates Old Navy and Banana Republic stores, said sales at outlets open at least a year fell 3 percent. Limited said its sales dropped 4 percent and American Eagle reported a 7 percent decline. Starbucks Corp., the world’s largest coffee shop operator, said Sept. 9 it is removing 30 U.S. stores from a list of locations it planned to close after sales and profits improved. The Seattle-based company had planned to shutter about 800 U.S. stores and about 160 international cafes. The Institute for Supply Management said last week that its August national manufacturing survey showed expansion for the first time in 19 months. New and existing home sales reports are among data supporting the outlook for renewed growth. Home resales rose to a 5.24 million rate in July, the highest level in almost two years, while new home purchases were the highest in almost a year. Job Losses A Labor Department report last week showed the pace of job losses slowed in August, even as the unemployment rate rose to a 26-year high of 9.7 percent. Companies cut payrolls by 216,000 workers, after a 276,000 drop in July. The number of Americans filing first-time claims for jobless benefits dropped last week to the lowest level since July, the Labor Department said yesterday. Applications fell by 26,000 to 550,000 in the week ended Sept. 5. The economic recovery will probably be “lackluster,” hobbled by strains in financial markets and weak consumer spending, Federal Reserve Bank of Atlanta President Dennis Lockhart said yesterday. Fed policy makers are next scheduled to meet Sept. 22-23. At their prior meeting in August, officials decided to phase out their $300 billion Treasuries-purchase program through the end of October, extending buying by one month, and considered a similar move for the $1.45 trillion program to buy housing debt.

Source