March consumer morale hits series low

LONDON (Reuters) - Consumer morale fell in March to its lowest levels in four years, according to a survey from the Nationwide Building Society on Wednesday.

Nationwide said its consumer confidence index fell to 77 last month from 78 in February, the lowest since the series began in May 2004.

The expectations index remained at a series low.

"The downturn in consumer confidence over the last six months is not surprising given developments in the financial markets and a weakening housing market," said Fionnuala Earley, Nationwide's chief economist.

"The effect of recent interest rate cuts has yet to trickle through to people's pockets, particularly as food and energy costs are still high."

The Bank of England is expected to cut interest rates by 25 basis points to 5 percent on Thursday to help shore up the economy in the wake of the credit crunch.

(Reporting by Matt Falloon; Editing by Gerrard Raven)