After sliding for three months, consumer confidence jumped "as soon as the war started," researchers at the University of Michigan said Friday.
The university's closely watched consumer sentiment index rose to 77.6 for all of March compared with 75.0 in the first two weeks of the month.
The sentiment index, which was at 79.9 in February, has fallen three months in a row. The index is at its lowest level since August 1993.
The rise in consumer sentiment late in the month matched movements in oil and stock markets, which rallied in the early days of the war.
Consumer sentiment remains very volatile given the uncertainty over how long the war will last and what will come after, said Richard Curtin, director of the school's consumer research center.
Looking ahead, the impact of the end of a successful war "would likely be limited," Curtin said, because consumers are still worried about domestic terrorism as well as jobs and wages.
In addition, consumers express concern about the level of their debt "and want to add more to their savings and reserve funds," Curtin said.
"Overall, the data indicate that consumer spending will remain subdued during 2003," the report said.
In a separate report, the Commerce Department said real consumer spending fell 0.4 percent in February, the second decline in a row.
According to the UMich report, expectations about the economy six months down the road were little changed, falling to 69.6 in March from 69.9 in February, but rising from 67.2 in early March. It's a nine-year low.
About half of consumers expect no improvement in the labor market over the next year.
The current conditions index fell to 90.0 in March from 95.4 in February, but up from 87.1 in early March. It's a 10-year low.
Consumers' assessment of their current finances was bleak, with 40 percent judging that their finances had worsened during the month, the worst reading in 10 years.
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