Investor Confidence Index Declines from 84.0 to 77.2 in August
BOSTON, MA -- 08/19/2008

State Street Global Markets, the investment research and trading arm of State Street Corporation (NYSE:STT), today released the results of the State Street Investor Confidence Index® for August 2008.

Global Investor Confidence decreased by 6.8 points to 77.2 from a revised July level of 84.0. This month it was North American investors who drove the move, with confidence in that region declining from 85.8 to 77.7. European investors also felt less optimistic, as evidenced by a three-point decline in their confidence from 80.3 to 77.3. Asian investors saw a modest improvement in their risk appetite for the second month, and their benchmark rose from a revised level of 85.3 to 88.9.

Developed through State Street Global Markets' research partnership, State Street Associates, by Harvard University professor Ken Froot and State Street Associates Director Paul O'Connell, the State Street Investor Confidence Index measures investor confidence on a quantitative basis by analyzing the actual buying and selling patterns of institutional investors. The index is based on financial theory that assigns precise meaning to changes in investor risk appetite, or the willingness of investors to allocate their portfolios to equities. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence.

"Renewed concerns around credit and the likelihood that growth can be sustained in both Europe and Asia create the fundamental backdrop for this month's decline in confidence," commented Froot.

"There appears to have been a cycle of risk appetite declines rippling across the major regions over the last two months," added O'Connell. "North American investors took a more pessimistic view in June and European investors followed suit. The buoyancy of Asian confidence over the last two months was not sufficient to outweigh this increased pessimism."

The index is released globally at 10 a.m. Eastern time in Boston on the second to last Tuesday of each month. More information on the State Street Investor Confidence Index, including frequently asked questions and a calendar of release dates, is available at State Street's website. The previous month's calculations for the index are revised to account for trading activity through the end of the reporting period.

This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment. Those statements are based on current expectations and involve a number of risks and uncertainties, including those related to the pace at which State Street adds new clients or at which existing clients use additional services, the value of global and regional financial markets, the pace of cross-border investment activity, changes in interest rates, the pace of worldwide economic growth and rates of inflation, the extent of volatility in currency markets, consolidations among clients and competitors, State Street's business mix, the dynamics of markets State Street serves, and State Street's success at integrating and converting acquisitions into its business. Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in State Street's 2007 annual report and subsequent SEC filings. State Street encourages investors to read the corporation's annual report, particularly the section on factors that may affect financial results, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, August 19, 2008, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.
 
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