(Bloomberg) -- Consumer confidence climbed more than forecast inAugust, reaching the second-highest level in eight years on morefavorable views of the labor market.

The Conference Board’s index rose to 101.5 in August from arevised July reading of 91, the New York-based private researchgroup said Tuesday. The gauge exceeded the highest estimate in aBloomberg survey of economists, whose median forecast was 93.4. Thecutoff date for the survey was Aug. 13, indicating the numberdidn’t reflect the recent stock-market sell-off.

“Consumers’ assessment of current conditions was considerablymore upbeat, primarily due to a more favorable appraisal of thelabor market,” Lynn Franco, director of economic indicators at theConference Board, said in a statement.

Americans remained emboldened by job gains, cheaper gasolineand rising home prices in the period leading up to a slump in stockprices as global financial markets took a turn for the worse. Therisk for the economy is that households will reassess theirspending plans as they wait for evidence the U.S. expansion canwithstand such shocks.

Second-Highest

August marked the second-highest sentiment reading since thesame month in 2007. Estimates in the Bloomberg survey ranged from89 to 96.5. The Conference Board’s gauge averaged 96.9 during thelast expansion and 53.7 during the recession that ended June2009.

Another report Tuesday showed the S&P/Case-Shiller index ofproperty values rose 5 percent in the 12 months ended in June aftersimilar year-over-year gains in the previous three months.

The Conference Board’s gauge of present conditions increased to115.1 in August from 104 in the prior period. The share ofAmericans who said jobs were plentiful climbed to the highest levelsince January 2008.

The index of consumer expectations for the next six months roseto 92.5 from 82.3 in July.

The Conference Board’s data showed Americans’ assessments offuture labor-market conditions also picked up. The proportion ofconsumers expecting more jobs to become available in the next sixmonths rose to 14.6 percent from 13.7 percent in July.

Financial Markets

Rocky market conditions may weigh on consumers’ spirits. As ofMonday, more than $5 trillion has been erased from the value ofglobal equities since China unexpectedly devalued the yuan on Aug.11, a rout that has investors questioning whether the U.S. can holdup in the face of weaker economies abroad.

Economy-watchers are speculating on whether the volatility willprompt the Federal Reserve to delay raising interest rates. Inaddition to its dual mandate of full employment and pricestability, the central bank will likely weigh market conditions inits decision.

The fundamentals of the economy should lend some stability tothe picture. Payrolls have climbed by an average 211,000 a monththis year, while the unemployment rate lingers at a seven- yearlow, Labor Department data show.

Faster wage gains would go a long wayin boosting Americans’ confidence, though they’ve remainedstubbornly restrained. Average hourly earnings climbed 2.1 percentin the year ended July, within the same narrow channel thatemployee pay has tracked since the recovery.

--With assistance from Kristy Scheuble inWashington.

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