Consumer Confidence Plunges - Adding to Recovery Worries

The Conference Board's Consumer Confidence Index dropped to 47.7 in October, down from 53.4 in September.

Says Lynn Franco, Director of The Conference Board Consumer Research Center: "Consumers' assessment of present-day conditions has grown less favorable, with labor market conditions playing a major role in this grimmer assessment. In fact, the Present Situation Index is now at its lowest reading in 26 years (Index 17.5, Feb. 1983). The short-term outlook has also grown more negative, as a greater proportion of consumers anticipate business and labor market conditions will worsen in the months ahead. Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays."

The New York Times notes that economists were surprised by the decline and interprets the numbers for us.

Wall Street analysts predicted a reading of 53.1.

A reading above 90 means the economy is on solid footing. Above 100 signals strong growth.

And a reading of 47.7 signals ... well, you know.