NEW YORK — The nation's stores are awash with orange patent leather sandals and coral printed dresses, but gray or black would be a better match to shoppers' moods these days.

"The climate out there is frightening," said Judith Lederman, a public relations executive who was laid off from Lord & Taylor three weeks ago. The resident of Scarsdale, N.Y., says she'll bypass the mall and dig into her closet for her spring wardrobe.

The spring season, the last big chance to grab consumers before the back-to-school business, was already expected to be tough for retailers, particularly apparel merchants. An early Easter — tomorrow is the earliest Easter since 1913 — historically doesn't help sales of lightweight clothing, and deteriorating economic conditions have made shoppers even more nervous in recent weeks. Consumers already worried about rising prices, weak jobs, and housing markets and tight credit got another jolt on Monday with the near collapse of investment firm Bear Stearns Cos., a major casualty of the mortgage crisis.

"As you pile on uncertainty, there is a greater burden on consumers," said Lynn Franco, director of The Conference Board's Consumer Research Center.

Analysts expect the Conference Board to report next week that its consumer sentiment index will remain at a 17-year low of 75 in March, after tumbling 12 points in February. That's the lowest level since the index registered 64.8 in February 2003, just before the U.S. invaded Iraq. The index has been on a decline since it registered 111.9 last July.

That's bad news for retailers and the U.S. economy, which need consumers to be in a good mood. Consumer spending accounts for two-thirds of economic activity.

Michael Niemira, chief economist at the International Council of Shopping Centers, is sticking with his March same-stores sales growth forecast of only 1 percent for the 50 merchants he tracks, after a 1.9 percent gain in February. Same-store sales, or sales at stores opened at least a year, are considered a key indicator of a retailer's health.

"It is a tough month. It probably doesn't get much better," Niemira said.

He noted that soaring gasoline prices in particular are squeezing customers from all income groups. According to a survey conducted by ICSC earlier this month, 64 percent of about 1,000 customers polled said that higher gasoline prices were curbing their ability and willingness to spend, with 38 percent noting "a considerable cutback."

There is little relief in sight. Gas is averaging $3.28 a gallon and is expected to peak between $3.50 and $4 this spring. Also, Niemira and others are worried that consumers will use the tax rebate checks being mailed out in May to pay down debt, not to spend and spur the economy, as the government hopes.

Meanwhile, national retailers are closely following the developments on Wall Street.

The near failure of Bear Stearns "presents a scare tactic for the rest of the country," said Faith Hope Consolo, chairman of Prudential Douglas Elliman's retail leasing sales division.

Betsy Storm from Chicago said that her confidence in her own financial security was shaken after hearing the news about Bear Stearns. The self-employed marketing professional said the latest news served as a reminder to remain frugal. In recent months, Storm has been shopping more at outlet stores instead of full-price stores.

Apparel merchants across the country have been among the hardest hit as consumers view clothing as discretionary.

Stores hoped that spring's brightly colored clothing and bold geometric prints — a dramatic difference from neutral tones and beiges of a year ago — would help entice customers, but shoppers aren't enthusiastic so far.

March sales are sluggish, with consumers focusing on "sensible investment clothing," said Roseanne Cumella, senior vice president of merchandising at The Doneger Group, a New York-based buying office. Shoppers are limiting their spending on colorful items to handbags and shoes, Cumella said.

Patrick Presley, store manager at Fred Segal's location in Santa Monica, Calif., noted shoppers are focusing on basics — jeans and T-shirts — and not the latest trendy merchandise.