There was bad news for the US economy today, with latest figures showing consumer confidence slid to a nine-year low in February. The Conference Board's consumer confidence index plunged to 64.0 in February from a revised 78.8 in January. This is the lowest level of consumer confidence since Oct 1993. Confidence has now fallen for three straight months. The decline in consumer confidence was larger than expected. Wall Street analysts had forecast that consumer confidence would fall to 76.6 in February. January consumer confidence was revised down slightly from the initial estimate of 79.0. The index stood at 80.7 in December.
Commenting on the reading, Lynn Franco, director of the Conference Board's Consumer Research Centre, said, "Lackluster job and financial markets, rising fuel costs and the increasing threat of war and terrorism appear to have taken a toll on consumers." "This month's confidence readings paint a gloomy picture of current economic conditions, with no apparent rebound in the short-term horizon," Franco added. //www.fxcentre.com