Consumer confidence falls to record low.
The Financial Times (10/29, Politi) reports that US consumer confidence "plummeted to its lowest level on record this month, as the deepening of the financial crisis made Americans suddenly much more pessimistic about their current situation and prospects." The release of "the Conference Board index on Tuesday will bolster fears that US consumers are pulling back on spending in a big way heading into the critical holiday season, driving the economy into a deep and long-lasting recession." Consumer confidence "fell from a reading of 61.4 in September to 38 this month -- the lowest level since the index was established more than 40 years ago and well below economists' expectations that it would drop to 52."
The Washington Post (10/29, D1, Haynes) reports on the front page of its Business section that the "sentiment found in the survey was reinforced by more bad news in the retail sector -- layoffs at the world's largest appliance manufacturer and decreased consumer spending at rental car, athletic apparel and other companies." Even "relief at the gas pump -- with prices falling to a national average of $2.63 from a peak of $4.11 in July -- has not offset the gloom. For analysts, the survey from the private business research firm offers more evidence that the holiday season will be dismal and leaves little doubt that the country is entering a prolonged period of negative growth."
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