U.S. consumers shrugged off higher gasoline prices in July and grew a bit more optimistic about the economy, the U.S. Conference Board said today.

The private research group said its confidence index rose to a better-than-expected reading of 106.5 from a revised 105.4 in June. Analysts had expected the index to fall slightly to 104.

Lynn Franco, director of the Conference Board Consumer Research Centre, said the confidence index is showing some worrisome signs, however.

“Consumer confidence continues to hold steady, with the prognosis little changed from last month,” Franco said in a news release. “Present-day conditions remain favourable, though not as strong as earlier this year. Expectations for the months ahead remain cautious and also below levels earlier this year.”

The Present Situation Index, which measures how shoppers feel now about economic conditions, rose to 133.0 from 132.2. The Expectations Index, which measures consumers’ outlook over the next six months, edged up to 88.8 from 87.5 last month.

The consumer confidence index – derived from responses received through July 18 to a survey mailed to 5,000 households in a consumer research panel – showed that consumers remain uneasy about the job market. The figures released Tuesday include responses from at least 2,500 households.

Consumers claiming conditions are “good” increased to 27.6% from 26.6%. However, those claiming conditions are “bad” also increased to 15.5% from 15%.

Labor market conditions were little changed. Consumers saying jobs are “plentiful” increased to 28.6% from 28%, while those claiming jobs are “hard to get” remained virtually unchanged at 19.9%.

Meanwhile home sales, which have been a source of confidence for consumers, fell again in June.

The National Association of Realtors reported Tuesday that sales of previously owned homes and condominiums dropped 1.3% in June to a seasonally adjusted annual rate of 6.62 million units. It was the eighth time in the past 10 months that sales slipped, while home prices edged up at the slowest pace in more than a decade.