Recent comments by President Bush about signs of weakness in the U.S. economy, further rate cuts by the Federal Reserve and poor jobs data have taken a toll on consumer confidence. Consumer sentiment as measured by the latest RBC CASH (Consumer Attitudes and Spending by Household) Index has dropped to its lowest level since the survey was created six years ago.

The overall RBC CASH Index, released today by RBC, stands at 48.5 for February 2008, almost eight points below January’s 56.3 level.

Continuing a downward trend that has persisted through the past year, consumer sentiment fell across the board, driven especially by declining confidence in current conditions and growing worries about job security and investing, according to the survey of 1,006 Americans taken earlier this week.

“This month’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 RBC CASH Index is a monthly national survey of consumer attitudes about the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The index is composed of four subindexes: RBC Current Conditions Index; RBC Expectations Index; RBC Investment Index; and, RBC Jobs Index. Each index is benchmarked to a baseline of 100 assigned at its introduction in January 2002. This month’s findings are based on a representative nationwide sample of 1,006 U.S. adults polled from Feb. 4-6, 2008, by survey-based research company Ipsos Public Affairs. The margin of error was plus or minus 3.1 per cent.