US consumer confidence plummeted in October to its lowest level since November 1993, according to the Conference Board's consumer confidence index, published today. The index fell to 79.4 in October from a revised 93.7 in September, a significantly greater decline than had been forecast. Most analysts had tipped a fall to 91.1.
September consumer confidence was revised to 93.7, up slightly from the initial estimate of 93.3. The Present Situation Index fell to 77.5 from 88.5. The Expectations Index fell to 80.7 from 97.2 in September. Commenting on the shock drop, Lynn Franco, director of the Conference Board's Consumer Research Centre, said, "A weak labour market, the threat of military action in Iraq, and a prolonged decline in financial markets have clearly dampened both consumers' confidence and their expectations for the near future."
"The outlook for the holiday retail season in now fairly bleak. Without the likelihood of a pickup in consumer spending, an already weak economic recovery could weaken further," she added. ///www.fxcentre.com