"People will be avoiding the malls for the most part for the next few weeks," said James Lowry, a retail-marketing analyst and marketing professor. "Consumers don't like uncertainty and confusion.

"I think people will continue to buy the basics," he said. "But, the big ticket items like cars, furniture and DVD players will sit on the shelves for the next several weeks."

Even without Tuesday's attack, consumers had reason for wariness. Consumer sentiment tumbled last week while jobless claims surged. Industrial production fell for an 11th straight month in August, a month when the unemployment rate jumped to a four-year high.

Insurers also face billions of dollars in claims from the attack, whose disruptions will impact consumer confidence and business spending.

Lowry said government leaders have done a good job in the last few days to soothe consumer sentiment, calling for calm and a return to daily habits.

He believes consumer confidence could rebound if there are no additional terrorist attacks and the economy remains fairly stable. Considerable stimulus was originating from about $4 billion a week flowing into the economy from the Bush administration's tax rebates, cheaper credit from the Fed and a certain increase in defense spending ahead.

"With the Federal Reserve cutting rates and all the talk by government officials, I think people want to hang in there,"

Lowry said. "The government is also helping to restore business confidence with the commitment to bail out certain industries, like the airlines.

"I think that in the short term, people are going to take a wait-and- see approach," he said. "If things don't work out before the Christmas holiday season, retailers are going to have to really slash prices deeply to get consumers to start shopping."

By Marc Ransford, Communications Manager

(NOTE TO EDITORS: For more information, contact Lowry at jlowry@bsu.eduor (765) 285-5180.)