WASHINGTON, Oct 28: US consumer confidence plunged to a record low in October as consumers felt the bite of the credit crisis, a private firm said on Tuesday, sounding alarms over the year-end holiday shopping season.

The Conference Board, a business research firm, said its consumer confidence index plummeted to 38.0, down from 61.4 in September.

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.

The survey of 5,000 households ended on October 21, and came on top of fierce global market turmoil as a tightening credit squeeze brought lending to a virtual halt, prompting massive cash injections and financial rescues by governments.—AFP