Key consumer measure at all-time low

A key measure of consumer confidence fell to an all-time low in October as the financial crisis weighed on American household budgets.

The Conference Board, a New York-based business research group, said Tuesday that its Consumer Confidence Index plummeted to 38 in October from an upwardly revised reading of 61.4 in September.

Last month's decline brings the index to its lowest level since its inception in 1967.

Economists were expecting the index to have declined to 52, according to a survey by Briefing.com.

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

The nation's financial system has been under considerable strain in October as the credit crunch has hampered businesses ability to fund essential activities.

Stock prices have plunged as investors fear the global economy is on the verge of recession. The Dow Jones industrial average has fallen more than 27% in October.

While gas prices have come down significantly, which puts more cash in consumers' pockets, Americans appear more focused on the deteriorating job market.

So far this year, the economy has lost 760,000 jobs, according to the Labor Department's September payrolls report.

A case in point: Whirlpool Corp., the nation's largest home appliance maker, said Tuesday it will cut about 5,000 jobs by the end of 2009 to cope with the credit crisis and weak demand.

"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," Franco said.