NEW YORK (CNN/Money) - A closely watched measure of U.S. consumer confidence was higher in July than first estimated, according to published reports Friday, indicating that consumers were not quite as worried about news of corporate malfeasance and falling stock prices as first thought.

The University of Michigan revised its July consumer sentiment index to 88.1 from an initial reading of 86.5, according to a Reuters report. Economists, on average, expected a reading of 86.5 following June's reading of 92.4, according to Briefing.com. The report is available only to paying subscribers.

"The fact that the final number is higher than the preliminary number shows that the American consumer is not going to be easily intimidated," said A.G. Edwards economist Patrick Fearon.

The survey's expectations index, measuring consumer feelings about the future, was also revised upward, to 81 from an initial reading of 78.5, Reuters said -- still well below June's 87.9 reading. The current conditions index was slightly revised to 99.3 from an initial 99, compared with June's reading of 99.5, Reuters said.

Economists have grown concerned recently that weakness in the stock market could have a negative impact on consumer sentiment and, eventually, slow down consumer spending.

Consumer spending is critical because it makes up about two-thirds of all U.S. economic activity. Resilient consumer spending helped make a recession that began in March 2001 one of the shortest and mildest in U.S. history.

Friday's Michigan sentiment index revision raises the hope that a rash of corporate scandals, from Enron Corp. to WorldCom Group and more, and a steep decline in stock prices may not have put much of a dent in the underlying economy.

"The survey for the final reading would have taken place over the past 10 days or so, when market volatility was particularly high," Fearon pointed out. "Because of that, the final reading very well could have come in below the preliminary reading. The fact it came in higher shows a certain amount of resilience in the consumer sector."

U.S. stock prices also rebounded following the news, moving higher in morning trading. Treasury bond prices fell.