U.S. consumer confidence improved slightly in November after dropping to an all-time low a month earlier. Meanwhile, the U.S. economy was a little softer during the third quarter than first believed, according to government data showing weaker consumer spending and overseas sales.

Separately, home prices continued to fall as the economic downturn deepened in September, according to the S&P/Case-Shiller home-price indexes, a closely watched gauge of U.S. home prices.

The U.S. Conference Board, a private research group, said its index of consumer confidence for November moved to 44.9 compared with a revised reading of 38.8 in October. Economists had expected a reading of 38.5 from a previously reported 38.0.

The present situation index, a gauge of consumers’ assessment of current economic conditions, decreased to 42.2 from 43.5 in October.

Consumer expectations for the state of economic activity over the next six months increased to 46.7 from 35.7.

“But, despite the improvement in the expectations index this month, consumers remain extremely pessimistic and the possibility that economic growth will improve in the first half of 2009 remains highly unlikely,” said Lynn Franco, director of The Conference Board Consumer Research Center, in a release.

Meanwhile, U.S. gross domestic product dropped at a seasonally adjusted 0.5% annual rate July through September, the U.S. Commerce Department said in a new, revised estimate of third-quarter GDP released Tuesday. It was the weakest performance since a 1.4% decrease in third-quarter 2001 GDP.

Economists had called for a 0.6% decrease in revised third-quarter GDP.

Originally, the government had estimated third-quarter 2008 GDP fell 0.3%. Second-quarter 2008 GDP climbed 2.8%.

Corporate profits kept retreating in the third quarter. Profits after taxes fell by 3.0% to US$1.302 trillion, after sliding 0.4% in the second quarter and 7.7% during the first quarter. Year over year, profits were down 9.9%.

The data revisions showed third-quarter spending by consumers dropped 3.7%. That was down from a previously reported 3.1% decrease; it was also below the second quarter’s 1.2% increase.

U.S. home prices continue to fall

The Case-Shiller data showed home prices in 10 major U.S. metropolitan areas fell 18.6% in September from a year earlier and 1.9% from August. The drop marks the 10-city index’s 12th-straight monthly report of a record decline.

In 20 major metropolitan areas, home prices dropped 17.4% from the prior year, also a record, and 1.8% from August. None of the regions was able to stave off a decline from August to September.