(Source: Business Wire)The Discover U.S. Spending Monitor rebounded in August, rising 3.5 points to 87.0 (based out of 100) as more consumers gained confidence in the economy and their personal finances. In all, 31 percent of U.S. consumers felt economic conditions were improving, a Monitor high and a 7-point increase from July. The rise in confidence also correlated with a 3-point increase in the percentage of consumers who felt their personal finances were getting better. Just over 21 percent felt their finances were improving, the highest number reported since August 2008.

The rise in economic and financial confidence may be a sign that consumers expect better times ahead, but that doesn't mean they plan to resume spending. Consumers plan to continue holding the line on discretionary spending heading into September.

Majority of Consumers Continue to Anticipate Cutting Discretionary Spending

For the third straight month, over 50 percent of consumers plan on cutting discretionary personal spending in the month ahead. In August, 52 percent planned on spending less on going out to dinner, movies, or sporting events. Other than May 2009, this number has stayed at or above 50 percent for the last 18 months.

Despite the recent improvements in the housing market, more consumers, 53 percent, plan on cutting home improvement expenses in the month ahead, a 3-point increase from July. Nearly half, 48 percent, are also planning to cut major personal purchases, like vacations, out of their budgets.

More Consumers Increase Savings

While discretionary spending plans are down, consumers reported an increase in plans to save and invest. Fifty-eight percent plan on saving and investing the same or more in the month ahead, a 3-point increase from July.

"There was definitely a positive turnaround in consumer attitudes toward the economy and their personal finances in August," said Julie Loeger, senior vice president of brand and product development for Discover. "The rise in the stock market and stable gas prices may have given consumers a reason to believe things are improving and the ability to save and invest more. But improved economic and financial attitudes have not translated into increased consumer spending, a cause for concern for retailers counting on revenue from back-to-school shopping and as the holiday season approaches."

Monitor-Low 46 Percent Have Money Left Over After Paying Monthly Bills

Improved economic and financial confidence did not lead to more consumers having money left over after paying the monthly bills. Only 46 percent reported money left over in August, a Monitor-low and 5 points lower than a year ago.