Consumer confidence in the US slipped to a 10-month low prompting the biggest one-day decline in stocks in nearly three weeks. The sharp decline in consumer confidence raised concerns that the stock market rally might have surpassed global economy recovery and the fact that the road to revival is still under construction.

The Conference Board's consumer confidence index declined to 46. In addition to that, the concerns about the fragile economy and the subdued labor market pressed an index of current conditions - the present situation index, to a 27-year low.

The Index, which had improved in January, tumbled sharply in February. The Index stands at 46 for February, down from 56.5 in January. The Present Situation Index also decreased from 25.2 to 19.4. The S&P 500 fell 1.2 per cent to 1,094.6 in New York. The DJIA tumbled 1 per cent, to 10,282.41.

Yesterday, the business climate index in Germany, based on a survey of 7,000 executives, fell to 95.2 from 95.8 in January said Ifo institute in Munich. In March last year the index reached a 26-year low of 82.2.