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What is your best canned excuse for letting a candidate know the answer is no?

"They are moving in a different direction?"

Curious.......when the interest is simply not there, is there an easy way for recruiters to let a candidates down?

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I strongly feel a straight answer is the best answer.  We, recruiters, sometimes forget that candidates will take the news a lot harder than we will.  Give them as much information as you possibly can.  I am not a fan of the generic answers as it leaves the candidate with possibly a bad taste in their mouth about you and/or other recruiters.

Anything that can help the job seeker, I'm all for.  Especially if, perhaps I didn't do a good job in my recruiting if the client came back with just 'meh'.

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