Consumer confidence plunges in October

Consumer confidence fell by the largest amount on record in October, according to a preliminary release of the Reuters/University of Michigan Surveys of Consumers' Index of Consumer Sentiment. The index fell to a reading of 57.5 in October, compared with a reading of 70.3 in late September, marking the largest drop since the index debuted in 1978. Economists surveyed by MarketWatch were expecting a reading of 64.5. The consumer expectations index, which projects the direction of consumer spending, declined to 56.7 in October from 67.2 in September. The current conditions index declined to an all-time low of 58.9 in October from 75 in September. "There is a tremendous lack of confidence in the equity markets and many people are scared," said Thomas K. R. Wilson, managing director of institutional investments & private client group at Brinker Capital Inc. in Berwyn, Pa., which manages approximately $9 billion in assets. The final October reading will be released on Oct. 31. Thomson Reuters is based in New York, and the University of Michigan is in Ann Arbor.