US consumer confidence plunges to new low

US consumer confidence fell to a record low in October, under pressure from the global financial crisis, home repossessions and company lay-offs of workers.  ┬á The Conference Board said its monthly consumer confidence index fell to 38, down from a revised 61.4 in September and below analysts' expectations of 52. This is its lowest level since the board began tracking consumer sentiment in 1967. ┬á┬á The Conference Board conducts a survey of 5,000 US households to gauge consumer spending, which accounts for two-thirds of the US economy. Even falling gasoline prices failed to boost confidence.┬á┬á "Consumers are extremely pessimistic," said Lynn Franco, director of the Conference Board's Consumer Research Center. "This news does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season." ┬á┬á The warning comes as household appliance maker Whirlpool announced it would cut 5,000 jobs by the end of 2009, partly due to the downturn in US home sales. ┬á┬á The percentage of respondents with plans to buy an automobile within six months declined from 4.9 percent to 4.4 percent, while the proportion of those planning to buy a major appliance fell from 29 percent to 25.9 percent. There was a slight rise, however, in the numbers planning to buy a home, from 2.3 percent to 2.7 percent.  ┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *