The report said its index of consumer confidence for October dropped to 38.0, compared with a revised reading of 61.4 in September. Economists surveyed by Dow Jones Newswires expected a reading of 51.5.
The consumer expectations index for the state of economic activity over the next six months declined to 35.5 in October from 61.5 in September.
"The impact of the financial crisis over the last several weeks has clearly taken a toll on consumers' confidence," said Lynn Franco, director of the Conference Board Consumer Research Center. "Their earnings outlook, as well as inflation outlook, is also more pessimistic, and this news does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season."
The present situation index, a gauge of consumers' assessment of current economic conditions, fell to 41.9 from 61.1 in the prior month.