US consumer confidence hit a record low this month as Americans continue to feel the pinch of bigger mortgages and household bills as well as ongoing debt repayments.

The Conference Board said its consumer confidence index plummeted in October amid increasing anxiety over job security and future financial prospects.

In September the index stood at 61.4, but this month it fell to just 38.0 - the lowest reading since the index began in 1967.

Lynn Franco, the Conference Board's chief economist, said: "The impact of the financial crisis over the last several weeks has clearly taken a toll on consumers' confidence."

October's decline follows three consecutive months of slight gains, which according to Ms Franco does not bode well for retailers this holiday season.

Indeed, a survey conducted earlier this month by the business advisory firm AlixPartners shows that 64 per cent of US consumers plan to spend less on Christmas gifts this year.

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