CHRISTOPHER S. RUGABERWASHINGTON (AP) â¿¿ The U.S. economy is looking more resilient, thanks in part to encouraging signs for the two most expensive purchases most Americans make: cars and homes. Cheap loans and a bounty of fuel-efficient models enticed people to buy new vehicles at a brisk pace last month. And the nation enjoyed another year-over-year surge in home prices in August â¿¿ a sign that the housing industry is making a sustained comeback. Both trends reflect rising confidence in the economy. More families are replacing aging cars. And rising home prices are leading more would-be buyers to conclude that a home is a good investment. Two surveys last week also reported improving consumer confidence. The apparent progress could benefit President Barack Obama, who faces off with Mitt Romney on Wednesday in an economy-focused debate just five week ahead of the election. Despite the brightening auto and housing industries, the broader American economy is still struggling. It grew at a meager 1.3 percent annual rate in the April-June quarter. Most economists foresee little strengthening the rest of the year. Hiring remains too sluggish to reduce high unemployment, which is at 8.1 percent. The manufacturing sector is struggling to grow consistently. Workers' pay is lagging inflation. A dismal European economy has cut demand for U.S. exports. And the economy remains at risk of falling off a "fiscal cliff" early next year. That's when tax increases and deep spending cuts take effect unless Congress reaches a budget deal. If those measures do take effect, the economy could fall into recession. Yet many Americans appear to be looking past the economy's troubles. Surveys by the private Conference Board and the University of Michigan show that while consumers are anxious about current conditions, they're more optimistic about the future. That helps explain why Americans are expected to step up spending during this year's holiday shopping season. The National Retail Federation, the largest retail trade group, predicts sales will rise 4.1 percent. That's less than in each of the past two years but more than the average growth over the past 10. And it extends a growth trend that began after holiday sales sank 4.4 percent in 2008 in the midst of the recession.