U.S. consumer confidence fell to an all-time low in October, after a slight rise a month earlier, and expectations are even bleaker, according to report released.

The U.S. Conference Board, a private research group, said its index of consumer confidence for October dropped to 38.0, compared with a revised reading of 61.4 in September. Economists had expected a reading of 51.5.

The 23.4 point drop in the index was the third largest monthly drop in the series’ history, the board said.

The consumer expectations index for the state of economic activity over the next six months declined to 35.5 in October from 61.5 in September.

“The impact of the financial crisis over the last several weeks has clearly taken a toll on consumers’ confidence,” said Lynn Franco, director of the Conference Board Consumer Research Center, in a release. “Their earnings outlook, as well as inflation outlook, is also more pessimistic, and this news doesn’t bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season.”

The present situation index, a gauge of consumers’ assessment of current economic conditions, fell to 41.9 in October from 61.1 in the prior month.

Consumers took a very dismal view of the current job market. The percentage who think jobs are hard to get rose to 37.2% in October from 32.2% in September. At the start of 2008, only 20.6% thought jobs were hard to get.