Asian Crisis Blamed For Falling Confidence

Worries about being caught in ripples spreading from Asia’s financial crisis sent U.S. consumer confidence sliding sharply in January from December’s 28-year high.

The Conference Board reported Tuesday that its index of consumer confidence fell to 127.3 from a revised 136.2 in December.

While the drop exceeded economists’ expectations, the measure still remains at the unusually high levels of recent months, which have provided the strongest measures of confidence since 1969.

“Overall, the present state of the U.S. economy continues to keep consumers’ spirits positive and confidence readings at historically strong levels,” said Lynn Franco, associate director of the Board’s Consumer Research Center.

But, Franco added, “The continuing uncertainties generated by the Southeast Asian crisis, coupled with the volatility of worldwide financial markets, may very well have consumers concerned about both the short and long-term repercussions for the U.S economy.”