Consumer confidence takes dive to 5-year low

USA TODAY, March, 2008 by John Waggoner

Consumers' expectations about the economy plunged in March to levels not seen since 1973, when Watergate and the Arab oil embargo shook the nation's outlook for the future.

The Conference Board, a private business and research organization, said its expectations index -- survey respondents' outlook for business conditions over the next six months -- plunged to 47.9 in March, down from 58.0 in February. The March reading was the lowest since December 1973. "It's low and has fallen very sharply," says Ken Goldstein, labor economist for the Conference Board.

The overall consumer confidence index fell to a five-year low of 64.5 in March, from 76.4 in February. The survey is based on a sample of 5,000 U.S. households.

Rising unemployment and inflation...