U.S. consumer confidence plunged in October to its all-time low as consumers badly hurt by the financial crisis, the Conference Board reported Tuesday. The overall index of consumer confidence plunged by a massive 23.4 points in October from last month revised-reading of 61.4, to a new low of 38, the lowest reading ever recorded since the survey began in 1967.
The report was extremely awful, wiping out any optimism that had been gained as oil and fuel prices tumbled from this summer’s record highs.
Consumers are feeling the brunt of this recession and a significant deterioration in the job market. Household wealth has evaporated owing to plummet home prices and plunge in the stock market. In addition, consumers are struggling to finance their purchases because of ever-tightening lending standards
The pessimistic consumer confidence reading echoes forecasts that consumer spending will likely decline in the third and fourth quarter of this year. As a result, gross domestic is expected to decline at a steep rate in the final three months of this year. Consumer spending has driven more than two-thirds of U.S. economic growth.
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