Chicago Fed senior economist Charles Evans said. The data added to an already muddied picture of the shaky U.S. economy. Recent indicators showing consumer confidence may be climbing back and that the dramatic downturn in the manufacturing sector may be over have offered glimmers of hope. But reports on industrial activity and durable goods orders, plus continued drops in stock markets, have some analysts thinking the downturn is far from over. Specifically, economists are looking to see if consumers will clamp their wallets shut in response to watching their stock portfolios tumble.
Consumer spending accounts for two-thirds of U.S. economic activity.
Stocks fell on Tuesday as investors continued to fret about the outlook for the U.S. economy and company earnings. The Dow Jones industrial average fell 292.22 points, or 2.99 percent, to 9,485.71, and the Nasdaq Composite index tumbled 109.97 points, or 6.17 percent, to 1,673.00. Excluding the volatile transportation sector, orders dipped just 0.3 percent. Despite the decline, economists said there may be a silver lining. Inventories fell 0.1 percent in February, following a 0.5 percent increase in the previous month.