Confidence in British households fell to its lowest level in eight years in March as consumers weighed up the potential economic impact of the war in Iraq. UK consumer confidence fell one point in March to minus 10, the lowest reading since December 1995, according to the latest monthly survey from Martin Hamblin GfK. The index tumbled six points in February. The UK economy grew at its slowest pace in a decade last year and the Bank of England cut interest rates by 25 basis points to 3.75pc in February amid signs that consumer activity is slowing. "The broad picture is one of moderating consumer spending," the bank said in its Inflation Report. Yesterday, High Street chemist Boots indicated that its sales are suffering, warning that full year profits would come in at the low end of expectations. The GfK survey was conducted between 27 February and 18 March, before the start of military action in Iraq. "Both of the personal finance measures have dropped slightly along with expectations for the future of the general economic situation, however, perception of the development of the general economy and the current purchase climate has improved slightly," GfK said.// /www.fxcentre.com