US confidence in the economy dropped to a new low amid worries about a possible recession, the housing and credit markets and high energy prices, according to a survey.
According to the RBC Cash Index, confidence sank to a mark of 33.1 in early March, down from 48.5 in February. The new reading was the worst since the index began in 2002 and surpassed the previous low reached in February.
The continued deterioration in confidence comes even as Federal Reserve Chairman Ben Bernanke has signalled that the central bank will keep on cutting a key interest rate to bolster the economy.
Congress and the White House have enacted a relief package that includes tax rebates for people and tax breaks for businesses. Rebates of up to $600 for individuals or $1,200 for married couples should start going out in May.
Over the past year, consumer confidence has fallen sharply, underscoring the toll of the ailing housing market and a credit crunch that has made it more difficult for people to secure financing for big-ticket purchases such as homes and cars.
Last March, confidence stood at 92.3. The index is based on results of the international polling firm Ipsos.