Reports Signal Lift in U.S. Economy. Americans more optimistic,

AP WASHINGTON — American companies in October increased their orders of machinery and equipment that signal investment plans by the largest amount in five months, a hopeful sign for future economic growth.

Two other indicators out on Tuesday — private surveys of home prices and consumer confidence — rose briskly, more signs of optimism. Consumer confidence rose in November to its highest level in almost five years, the Conference Board said.

Orders for core capital goods, considered a proxy for business investment, rose 1.7 percent in October, the best showing since a 2.3 percent rise in May, the Commerce Department said Tuesday. Orders in this category had slowed beginning in the spring, acting as a drag on overall economic growth.

Total orders for durable goods were unchanged in October. Many businesses had been holding back because they are worried about tax increases and federal spending cuts that will take effect in January unless Congress reaches a budget deal first. Most economists predict the economy will suffer a recession in the first half of 2013 if lawmakers and President Obama can’t reach a deal.

In another economic report Tuesday, the Standard & Poor’s Case Shiller national index showed home prices increased in September in most major American cities, more evidence of a housing recovery that is providing a lift to the fragile economy.

The index, measuring prices in 20 cities, rose 3 percent in September compared with the same month a year ago. Prices also gained 3.6 percent in the July-September quarter compared with the same quarter in 2011.

In the third report, the Conference Board said its Consumer Confidence Index rose to 73.7 points in November from 73.1 in October. Both were the best readings since February 2008.

Americans were more optimistic because, the survey found, they saw the job market getting better. Employers added 171,000 jobs in October and more jobs were created in August and September than first thought.

The survey is watched closely because consumer spending drives nearly 70 percent of economic activity. It is still below 90 points, which is consistent with a healthy economy. It last reached that level in December 2007. The index is far above the all-time low of 25.3 points, touched in February 2009.

In the Commerce Department report, economists called the rebound in orders in the business investment category encouraging but said that business would remain cautious until Congress and the Obama administration reach a budget deal. “We don’t anticipate any marked turnaround until Congress gets its act together and reaches an agreement,” said Paul Ashworth, chief United States economist at Capital Economics. He said if a deal is reached either late this year or early in 2013, “then we would expect to see something of a rebound in business investment as firms give the green light to projects put on hold in the second half of this year.”

White House economists on Monday warned that the uncertainty of a potential increase in taxes next year for middle-class taxpayers could hurt consumer confidence and spending during the crucial holiday shopping season. [More of that White House prodding of Congress.]

Businesses have also grown more cautious because Europe’s financial crisis has pushed many countries in the region into recession. That has cut into American exports and corporate profits. Growth has also slowed in China, Brazil and other big developing nations which are major markets for American exports.