Driven by declining faith in current conditions and growing worries about job security and investing, consumer confidence in the economy fell to 48.5 on the February RBC Consumer Attitudes and Spending by Household Index—the lowest it has been since the index was created six years ago.

“[February’s] reading indicates a very poor mood among consumers who are confronted with news about a housing recession, falling stock prices, problems in the banking system and a deteriorating overall economic environment,” said T.J. Marta, economic and fixed-income strategist for RBC Capital Markets. “With consumer spending driving 70 percent of the U.S. economy, a pullback in spending increases the risk that the country could tip into recession.”

The monthly survey measures consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. It is composed of sub-indices covering current conditions, expectations, investment and jobs.

The RBC Current Conditions Index was 63.6, down from 78.9 in January. One in three American consumers (31 percent) rated their personal finances as weak, up from 27 percent in January.

The RBC Expectations Index stood at -7.0, compared with -8.2 in January. Only one in three consumers (33 percent) expected their personal finances to be stronger in six months.

The RBC Investment Index was 62.6 in February, down sharply from 76.3 in January. More than half of consumers (52 percent) said they were less confident about investing for the future, versus 48 percent in January. Only 22 percent said they were more comfortable making a major purchase, such as a house or car, compared with 28 percent in January.

The RBC Jobs Index stood at 101.3 in February, down from 106.9 in January. Although this figure is at its lowest level since September 2003, Americans' confidence in their jobs remained comparatively strong.

To see the complete RBC CASH Index report for February, go to www.rbc.com/newsroom/rbc-cashindex . [May 2008 PET AGE]