The global financial upheaval has driven consumer confidence to the lowest level ever recorded by the Conference Board.
After showing modest improvement in September, the board’s Consumer Confidence Index plunged more than 23 points in October. The index, which stood at 61.4 in September, hit an all-time low of 38 in October. The 23.4-point decline was the third largest since the Conference Board began compiling the index in 1967.
“The impact of the financial crisis over the last several weeks has clearly taken a toll,” said Lynn Franco, director of the Conference Board’s Consumer Research Center, in a statement. “Looking ahead, consumers are extremely pessimistic, and a significantly larger proportion than last month foresees business and labor market conditions worsening.”
This article originally appeared in the December 2008 issue.