A shock to consumer confidence, one of the last economic pillars before the attacks, is the reason for the altered outlook, Wyss said. Just looking at any shopping center in the U.S., or any restaurant, will confirm that people have backed away from spending. Japan's credit rating may be cut as much as two notches in the face of a deeper, longer recession than was feared earlier. Before the attacks, O'Neill had predicted a rebound in the fourth quarter. He had said there were signs of growth.
Analysts now say there's plenty of evidence any rebound has been derailed.
It said 10,800 people already have filed claims for unemployment benefits, citing the attack on the World Trade Center for their job losses. German, U.S. economies can withstand terrorists' attacks Bundesbank President Ernst Welteke said the U.S. and Europe seem able to withstand the impact of the terror attacks, but he didn't rule out a recession. MBA A surge in refinancing boosted the Mortgage Bankers Association's index of mortgage applications to 640 from 533.3 for the week ended Friday. But new purchases continue to flag in the wake of the terrorist attacks. The MBA's purchase index edged higher to 283.5 from 282.4 the week before - but down from 310.5 the week ended Sept. 7.