Consumer Confidence Plummets in February

U.S. consumer confidence in the economy fell to its lowest point since October 1993, the Conference Board said Tuesday. The board's consumer confidence index fell to 64.0 from 78.8 in January.

A separate report by the National Association of Realtors said that existing home sales rose 3% to an annualized rate of 6.09 million units in January.

The Conference Board surveyed 5,000 U.S. households, and in addition to its confidence index, its expectations and present situation index also posted declines.

The expectations index fell to 65.6 in February from 81.1 last month and the present situation index dropped to 61.6 from 75.3 in January.

"Lackluster job and financial markets, rising fuel costs, and the increasing threat of war and terrorism appear to have taken a toll on consumers," said Lynn Franco, director of the Conference Board's Consumer Research Center. "This month's confidence readings paint a gloomy picture of current economic conditions, with no apparent rebound on the short-term horizon."

Despite consumers’ souring opinions on the economy, analysts said that low mortgage rates helped boost home resales, Bloomberg said.

Analysts told Bloomberg that the increase suggests that the housing market retained its strength at the start of 2003 after last year’s record-setting performance.

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