Consumer confidence in the American economy has taken a nosedive.
Tuesday the Conference Board reported its Consumer Confidence Index sank to 97.6 from a revised 114 in August -- the largest monthly point drop since the Persian Gulf War and its lowest level in more than five years.
The group said the survey data was collected before and after the Sept. 11 attack on the United States, but noted there was little difference in the data from the two periods. They said the reaction is very similar to how consumers felt about the economy following the start of the Gulf War and the bombing of the Oklahoma City federal building in 1995.
The big concern is how the recent news will affect consumer spending. So far consumer spending has keep the American economy out of a full-blown recession. The fear is that it could fall even further and for the trucking industry, which has already had to endure a falloff in manufacturing shipments, that would be another blow to an already difficult year.
Opinions vary far and wide as to how this will pan out in the near term, but there is some hope down the road, at least from one group.
According to published reports, The Economic Planning Associates is predicting after a further short-term downturn this year, the economic prospects for 2002 look better. They are predicting the economy will rebound more than many are expecting, due mainly to policies implemented by the federal government long before and immediately after the attack on America.