Consumer Confidence Falls Unexpectedly

(Updated with stock prices and ICSC sales data.)

CHICAGO (TheStreet) -- It's getting closer to the merriest time of the year, yet consumers are not feeling all so joyous.

The Conference Board's Consumer Confidence Index fell unexpectedly in October to 47.7, down from 53.4 in September. Analysts had actually predicted the index would grow to 53.5.

October's number represents the second-lowest level since May.

Not only are consumers worried about the current economic state; they also have a dismal outlook for the future. The Expectation Index dropped to 65.7 during the month from 73.7 in September.

The news sent shares of retailers in the red Tuesday morning, with the S&P Index falling 0.9% to 392.98. Some of the morning's biggest decliners include Limited Brands,(LTD Quote), Under Armour(UA Quote), Pacific Sunwear of California (PSUN Quote) and Rite Aid(RAD Quote).

But even though consumers are saying they are pessimistic, sales are faring better. For the week ended Oct. 25, retail sales inched up 0.1%, according to the International Council of Shopping Centers and Goldman Sachs. This is the fifth straight weekly increase of the index.

In addition, on a year-over-year basis sales are up 2.4%.

ICSC expects October sales to be flat with upside potential.

-- Reported by Jeanine Poggi in New York

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