WASHINGTON — Consumer sentiment rose more than expected in August and expectations hit the highest level since the recession began, indications that Americans' pessimism about the economy might be lifting.

The housing sector also showed signs of life as a national measure of home prices posted its first quarterly increase in three years.

The New York-based Conference Board said today its Consumer Confidence index rose to 54.1 from an upwardly revised 47.4 in July. Economists surveyed by Thomson Reuters had expected a slight increase to 47.5.

Still, the index is well below 90, the minimum level associated with a healthy economy. Anything above 100 signals strong growth.

Economists closely monitor confidence because consumer spending accounts for about 70 percent of U.S. economic activity.

Consumer sentiment hit a record-low of 25.3 in February.

The housing sector also received positive news.

The Standard & Poor's/Case-Shiller's U.S. National Home Price Index rose 1.4 percent in the second quarter from the January-March period, the first quarterly increase in three years.