Hopes of a Quick Recovery Appear Dashed

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NEW YORK (AdAge.com) -- Consumer confidence took another sharp drop in October, pushing back hopes of a recovery in 2002.

According to the Conference Board's monthly Consumer Confidence Index, which tallies public opinion on the current economy, consumer confidence dropped 11.5 points to 85.5 points, its lowest level since February 1994.

The survey, by Interpublic Group of Cos.' NFO WorldGroup, found the percentage of consumers expecting conditions to deteriorate in the next six months rose to 20.3%, from 15.8% in September, and those expecting to see fewer jobs rose to 28.9% from 22.5% in September.

The Conference Board's latest findings differ sharply from a separate poll taken Oct. 18-19 that reported consumer confidence was rebounding from the impact of the Sept. 11 terror attacks. That same poll found 52.3% of consumers think the terror attacks will push the economy into recession, up from 47.2% of those polled Sept. 18-19.

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