US consumer confidence took another hit in March as Americans' anxiety mounted during the run-up to war with Iraq, according to a survey taken before the start of hostilities.
The Consumer Confidence Index fell to 62.5 in March from an upwardly revised 64.8 in February, the Conference Board, a private business research group, said today.
Higher oil prices and a stagnant jobs market also weighed on sentiment. Consumer confidence is closely watched by economists and businesses for clues about spending, which makes up two-thirds of the US economy.
Ms Lynn Franco, the board's research director said although a quick US victory in Iraq would certainly ease some of the uncertainties facing consumers, 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." Ms Franco added.