Consumer confidence lowest since March 2009 (by Ruth Mantell)

WASHINGTON (MarketWatch) - Consumers became more pessimistic in October, with worse expectations and views on the current economy, as consumer confidence dropped to the lowest level since March of 2009, the Conference Board reported Tuesday. The nonprofit organization said its consumer-confidence index declined to 39.8 in October from a September level of 46.4, which was upwardly revised from a prior estimate of 45.4. "Consumer confidence is now back to levels last seen during the 2008-2009 recession," said Lynn Franco, director of the Conference Board's consumer research center, in a statement. Generally when the economy is growing at a good clip, confidence readings are at 90 and above. Economists had expected a reading of 46 for October, illustrating consumer concerns over long-term trends. The Conference Board's expectations barometer fell to 48.7 in October from 55.1 in September, while the present-situation gauge fell to 26.3 from 33.3. Consumer spending is the largest portion of the economy, and economists watch confidence readings to get a feel for the direction of spending. Still, analysts have noted a recent breakdown in the relationship between sentiment and spending.