Confidence in Economy Falls Sharply in Early March

Washington, DC, March 7, 2008-- Consumer confidence in the economy dropped to a new low, according to the RBC Cash Index.

The index fell to 33.1 in early March, down from 48.5 in February. The reading was the worst since the index began in 2002.

"The U.S. consumer is definitely in full defensive mode," said T.J. Marta, a fixed-income strategist at RBC Capital Markets.

Consumer confidence has fallen sharply over the last year, largely due to the falling housing market and the turmoil in the credit market, as well as increasing prices for food and energy.

Another measure of consumers' feelings about current economic conditions dropped to 54.7 in early March, down from 63.6. The reading was the lowest in six years of records.

A measure of attitudes about investing, including comfort in making major purchases, dropped to 56.7 in early March, down from 62.6 in February. The figure was also the lowest since at least 2002.