Consumer confidence in the local economy is on shaky ground according to the results of a survey by Total Marketing and Communications.

The company found that residents? faith in the economy has dropped sharply over the last seven years, revealing significant volatility. The survey revealing confidence levels have dropped 11 percent to 89 points from the benchmark 100 points seven years ago.

In a press release, the company said the political landscape in Bermuda was reflected in consumer confidence changes, with levels typically dropping during annual budget releases and improving for a short time only following an election.

In countries all over the world consumer confidence dropped following the 9/11 attacks and the war in Iraq which began two years ago.

The company revealed that the Bermuda Consumer Confidence Index reached higher levels this year but is low compared to levels in the past.

?Although Bermuda?s CCI reached its highest level this quarter since last September, it continues to be well below confidence levels reported in the late 90s,? said Graham Redford, TMC?s Managing Director.

?Consumer confidence can be described as fragile at the moment, having been negatively impacted by world events, as well as social, economic and political challenges within Bermuda itself.?

Confidence in the economy also differs by race according to those who conducted the survey, with black residents typically having more confidence in the local economy than white residents.

That being said, surveyors said the disparity has shrunk in recent years, with it standing only two points apart.

The Bermuda Consumer Confidence Index measures the public?s outlook with respect to economic conditions for both the country and for their own households. The index has been used successfully in Canada and the US and is computed from residents responses to a series of questions pertaining to broad economic conditions as well as their own household?s well being.