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Consumers more jittery
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October 27, 1998: 10:44 a.m. ET
Confidence gauge sinks for 4th month as consumers brace for wave of layoffs
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NEW YORK (CNNfn) - With the recent wave of corporate restructurings and layoffs taking their toll, consumers in October are more jittery about the economy, according to an independent survey released Tuesday.
The Conference Board reported that its index of consumer confidence fell 9 points in October to a reading of 117.3, well below the reading of 123.3 that economists had projected.
The decline marks the fourth straight monthly drop, representing the worst performance since 1993, when the index dropped during the first six months of the year.
"Growing anxiety about the financial markets, combined with political concerns and recent layoff announcements, have given consumers the jitters," says Lynn Franco, associate director of the board's Consumer Research Center.
Because consumers account for nearly two-thirds of economic activity, the latest reading doesn't present a favorable scenario for third-quarter gross domestic product data, which are set for release Friday.
The news helped lift the bond market as weaker economic conditions reduce the chances of inflation, which erodes the value of fixed-income investments. The benchmark 30-year Treasury bond was up 15/32 in price, pushing the yield down to 5.07 percent.
But other markets aren't likely to embrace the news. With consumers uneasy about jobs and salaries, retailers could be particularly hard hit during the all-important holiday season.
"Any further decline in the Confidence Index could spell a bleak season for retailers," Franco said.
The consumer confidence survey is based on a representative sample of 5,000 U.S. households. 
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The Conference Board
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