INSTANT VIEW: Consumer confidence at record low

NEW YORK (Reuters) - U.S. consumer confidence plunged to a record low in October as a worsening financial crisis left Americans anxious about their jobs and pessimistic about future prospects, a report said on Tuesday.

KEY POINTS: * The Conference Board said its index measuring consumer sentiment tumbled to 38.0 in October from an upwardly revised 61.4 in September. * That was the lowest reading since the index began in 1967. The previous low was 43.2 in December 1974. * The result was well below economists' expectations for a reading of 52.0 and comes after a modest improvement in consumers' mood the prior month. * Even the most pessimistic forecast of the 74 economists surveyed by Reuters was 45.0. * Consumers' evaluation of their present situation fell to 41.9, its lowest since December 1992, from an upwardly revised 61.1 in September. A year ago, it stood at 118.0. * The expectations subindex plunged to 35.5 from an upwardly revised 61.5 last month and from 80.0 a year ago. * The gauge of consumers' inflation expectations rose to 6.9 percent -- the highest since July -- from September's 6.2 percent.

COMMENTS:

RICK MECKLER, PRESIDENT, LIBERTYVIEW CAPITAL MANAGEMENT, IN NEW YORK:

"It certainly shows that the economy is slowing and it may slow very steeply. The question really for investors is, given all the selloff in the market, is that already part of current prices?

"I think some of the rally we see today is really about the fact that some investors feel it's fully discounted.

"There's no question we'll be seeing continued weakness if from nothing else than just the shock of the asset losses people have suffered."

DAVID COARD, HEAD, FIXED-INCOME SALES, TRADING, THE WILLIAMS CAPITAL GROUP, NEW YORK:

"It appears that consumer confidence was good for Treasuries, but the problem for Treasuries is there is an enormous amount of supply coming that is offsetting the economic news that is friendly (to government bonds): house prices which continue to come down and this incredibly low consumer confidence number."

TERRIN GRIFFITHS, ECONOMIST, INDUSTRY ANALYST, CALIFORNIA CREDIT UNION LEAGUE, RANCHO CUCAMONGA, CALIFORNIA:

"The sharp drop in the consumer confidence index shows that consumers have been really battered, and this last month in particular really took a toll on consumers' outlook. That does not bode well for the months ahead. Housing prices have been falling for some time and now the stock area has fallen sharply as well. People are adjusting their expectations going forward. Both the current situation and expectations indexes took significant hits in October. It shows that consumers are seeing the downturn as having a longer duration."

LINDSEY PIEGZA, MARKET ANALYST, FTN FINANCIAL, NEW YORK:

"What is scarier than the headline, consumers are upset about their present situation, but they are even more worried about their future. Consumers are completely shut down at this point."

"They see no end in sight even with all the actions that the government has taken, all actions the Fed has taken and the possible changes in Washington."

"They are so desperate and despondent at this point. It looks it's going to be a dismal holiday season for consumers, retailers and seasonal hirings."

DAVID WATT, SENIOR CURRENCY STRATEGIST, RBC CAPITAL MARKETS,TORONTO: