Consumer confidence plunges to 9-year low
Continuing bad news about the economy according to the New York Times story (registration required) while the Bush White House seems to be focused on getting votes for its Republican candidates and on the war on terrorism and war on Iraq,
In a report that is not only a warning signal for the economy but could also have an impact on next week's Congressional elections, the Conference Board reported today that consumer confidence plunged to a nine-year low in October.
The board's index of consumer confidence, which measures assessments of present and future expectations, fell to 79.4 this month from 93.7 in September. It is the biggest one-month drop since the decline registered from September to October 1990. And it is the lowest reading on consumer confidence since November 1993, when the index stood at 71.9 and was rising as the economy recovered from the 1990-91 recession.
In addition, the report found that consumer expectations about conditions six months from now were also sharply lower.
The declines were especially unnerving because consumer spending accounts for about two-thirds of the nation's gross domestic product.