Consumer Confidence and Recession after attacks on US

Economists predict that the attacks will push the US economy further into a recession after the recovery bill. Consumer confidence is expected to slump as demand decreases despite swift mass action by the world's central bankers and policy makers to increase financial liquidity.

Consumer spending accounts for two-thirds of US economic activity and is likely to be vastly limited in the next few weeks and even months.

"A grieving and fearful nation is hardly likely to turn to shopping malls and car showrooms," said Robert Parr, president of the San Francisco Federal Reserve Bank.

Other analysts expect consumers to alter their spending patterns. Spending in the fast moving cash goods sector (FMCG) and retail sales is anticipated to decrease slightly. Spending on big-ticket buys such as property and automobiles would decline the most.

No major problems were reported in banking systems. Automatic Teller Machines (ATMs) were able to dispense cash to meet consumers needs' although cash shortages were reported in the New York area. Certain retailers were however, refusing to accept payment by check since there were clearance delays in Federal Reserve's wire transfer system.

Fund managers are warning clients that although funds tied to stocks, bonds and other securities are safe, cashing them in will take longer than usual. Moreover, they are advising clients with spare cash to purchase stocks for excellent return on investment.