Consumer confidence hits historical low

Consumer confidence hit a record low this month, as the credit crisis darkened Americans’ outlook on the economy and the job market. The Conference Board Consumer Confidence Index fell to a reading of 38.0 for October, down from 61.4 in September. The reading was the lowest since the index was launched in 1967, falling below the previous low of 43.2 in the recessionary days of December 1974, according to published reports. The 23.4 point drop was the third largest in the history of the index. The present-situation index, which measures how shoppers feel now about the economy, plunged to 41.9 from 61.1 in September. The expectations index, which measures shoppers' outlook over the next six months, declined to 35.5, from 61.5 in September. “The impact of the financial crisis over the last several weeks has clearly taken a toll on consumers' confidence,” Lynn Franco, director of The Conference Board Consumer Research Center in New York, said in a statement. “Looking ahead, consumers are extremely pessimistic, and a significantly larger proportion than last month foresees business and labor market conditions worsening,” she added. “Their earnings outlook, as well as inflation outlook, is also more pessimistic, and this news does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season.”