The U.S. consumer confidence tumbled to an all-time low in October as the stocks plunged and credit crisis worsened, a research survey report revealed here on Tuesday.
The Conference Board Consumer Confidence Index now stands at 38.0, down from 61.4 in September. The decline in the index is the third largest in the history of the series, and the lowest reading on record, according to the report.
The report said that U.S. consumers' appraisal of current conditions deteriorated sharply in October. Those saying business conditions are "bad" increased to 38.3 percent from 33.4 percent, while those claiming business conditions are "good" declined to 9.2 percent from 12.8 percent.
Meanwhile, consumers' short-term outlook turned significantly more pessimistic. Those expecting business conditions to worsen over the next six months surged to 36.6 percent from 21.0 percent.
"The impact of the financial crisis over the last several weeks has clearly taken a toll on consumers' confidence," said the Director of The Conference Board Consumer Research Center Lynn Franco, "In assessing current conditions, consumers rated the labor market and business conditions much less favorably, suggesting that the fourth quarter is off to a weaker start than the third quarter."
With consumers extremely pessimistic on the economic outlook, including business and labor market conditions as well as earnings outlook, this news does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season, Franco added.
Established in 1916, the U.S. Conference Board is the world's preeminent business membership and research organization, best known for its monthly U.S. Consumer Confidence Index and the Leading Economic Indicators.
Source:Xinhua
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