New figures show that US consumer confidence slumped for the third month in a row in October and continued to hover around two-year lows.
Business research group the Conference Board said its consumer confidence index fell to 95.6, down from a revised 99.5 in September. The reading was much weaker than economists had expected.
'Further weakening in business conditions has, yet again, tempered consumers' assessment of current-day conditions and may very well be a prelude to lack-lustre job growth in the months ahead,' said Lynn Franco, the group's research director.
The confidence index is watched closely by investors as an indicator of consumer spending, which accounts for roughly two-thirds of US economic activity.
The latest snapshot on consumer confidence was released as the Federal Reserve prepared to open a two-day meeting in Washington. Most economists expect the Fed to cut short term interest rates by a quarter of a percentage point to 4.5% amid concerns about a US economic slowdown.
The two sub-indices in the Conference Board survey tumbled. The present situation index declined to 118.8 from 121.2 in September and the forward-looking expectations index fell to 80.1 from 85.
