There was more bad news for the US economy this afternoon, with figures just released showing another drop in consumer confidence. The Conference Board today said that its consumer confidence index fell to 62.5 in March from a revised 64.8 in February. Confidence has now fallen for four straight months. The drop in consumer confidence was smaller than expected. Wall Street analysts had forecast that consumer confidence would fall to 62.2 in March. February consumer confidence was revised up from the initial estimate of 64.0.
Lynn Franco, director of the Conference Board's Consumer Research Center, said, "While a quick and successful outcome in the Middle East conflict would certainly ease some of the uncertainties facing consumers and therefore boost confidence, it is the economic fundamentals that will determine whether a rebound is sustainable." "The end of the Gulf War in 1991 produced a surge in confidence, but labour market conditions quickly diminished the spark. So if history repeats itself, the current job scenario will do little to maintain any post-war surge in confidence," she added. //www.fxcentre.com