Open

Coming up

Don't miss

Replay


LATEST SHOWS

FOCUS

Spain's El Hierro to become world's first self-powered island

Read more

IN THE PAPERS

A bellwether for what not to do

Read more

ENCORE!

Luc Besson back in action with Scarlett Johansson in 'Lucy'

Read more

FOCUS

Israel's minorities and military service

Read more

MIDDLE EAST MATTERS

Iraq: Kurdish forces fight to protect Yazidis

Read more

DEBATE

Libya unrest: National Assembly asks for UN help to dissolve militias

Read more

DEBATE

Pakistan's Political Turmoil: Can Imran Khan's PTI Party Depose the Government? (part 2)

Read more

DEBATE

Pakistan's Political Turmoil: Can Imran Khan's PTI Party Depose the Government?

Read more

MEDIAWATCH

#IceBucketChallenge and hashtag activism

Read more

  • Ex-PM Juppé announces bid for 2017 French presidential race

    Read more

  • Brutal IS beheading video sparks social media pushback

    Read more

  • A new view on Normandy landings, 70 years on

    Read more

  • Video: Dozens arrested despite smaller protests in Ferguson

    Read more

  • Dozens killed as landslides strike Japan’s Hiroshima

    Read more

  • Deadly airstrikes hit Gaza as ceasefire with Israel collapses

    Read more

  • Tentative peace in Ferguson despite second fatal shooting

    Read more

  • Suspected Ebola cases in Austria, new drug raises hopes

    Read more

  • WWII anniversary highlights best - and worst - of Paris police

    Read more

  • Headscarf at the beach sparks French MEP’s fury

    Read more

  • Iraqi army clashes with militants in Tikrit after retaking key dam

    Read more

  • Video: Life in under-siege Donetsk

    Read more

  • Racism, riots and police violence: USA under scrutiny

    Read more

  • ‘Let it be’: Londoners sick of Abbey Road tourists

    Read more

US consumer confidence hits record low

Text by AFP

Latest update : 2008-12-09

The US consumer confidence index plunged to 38 points from 61 last month, its lowest level since the index was founded in 1985. The slump bodes ill for US retailers ahead of the crucial holiday shopping season.

US consumer confidence plunged to a record low in October as stressed consumers turned sharply more pessimistic and a global financial crisis bites, the Conference Board said Tuesday.

 

The business research firm said its consumer confidence index plummeted to 38.0, down from 61.4 in September, sounding alarms on consumer spending that drives the bulk of the economy, just ahead of the important year-end holiday shopping season.


Most analysts had expected a more modest decline to 52.0.

 

"The impact of the financial crisis over the last several weeks has clearly taken a toll on consumers' confidence," Lynn Franco, the Conference Board's chief economist, said in a statement.


"This news does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season," she said.

 

The plunge in consumer confidence followed three consecutive months of modest gains. The research firm revised  upward its September index to 61.4, from a prior estimate of 59.8.

 
Franco noted that the 23.4-point decline from September was the third-largest in the history of the series.

 

"In assessing current conditions, consumers rated the labor market and business conditions much less favorably, suggesting that the fourth quarter is off to a weaker start than the third quarter. Looking ahead, consumers are extremely pessimistic, and a significantly larger proportion than last month foresees business and labor market conditions worsening," she said.

 

Consumers' outlook on their earnings and inflation also soured.

Date created : 2008-10-28

COMMENT(S)