The Consumer Confidence Index is at 47.7, according to The Conference Board. Analysts predicted a reading of 53 for October.
A rating higher than 90 indicates the economy is on solid footing, while higher than 100 shows strong growth.
Despite reports that the economy is slowly and steadily improving, the index has been up and down since February, when it reached a historic low of 25.3. It September, it had climbed to 53.4.
The Conference Board predicts a grim future for shoppers that includes fewer jobs and lower salaries. As retailers prepare for the holiday shopping season, this is particularly bad news. Most retailers depend on the holiday shopping season as their primary source of annual revenue.
In their optimistic estimates, economists predict this year's sales to be at least flat from last year's holiday season, which saw the biggest declines since 1967 when the Commerce Department began collecting data.
Lynn Franco, director of The Conference Board's Consumer Research Center said, "Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays."
The results of the survey will likely also affect the travel industry, since consumers may decide to spend their holiday seasons closer to home.
The Consumer Confidence Index survey was sent to 5,000 households and had a deadline of Oct. 21.
This report comes closely behind a report saying housing sales rose again in August, making it the third straight month. This indicates the housing market may be recovering, as well.
Written by Nicole Palmby
Posted October 27th, 2009 by Nicole Palmby
