By Erik Wasson - 10/29/13 10:21 AM EDT
Consumer confidence took a big hit in October in the wake of the 16-day government shutdown and last minute debt ceiling talks.
The Conference Board reported Tuesday that its benchmark index had fallen to 71.2 from 80.2 in September. The index had been 81.8 in August.
The fall was driven by a sharp decrease in expectations for the future. This metric dropped from 84.7 to 71.5 on a scale where 100 represents positive consumer sentiment.
She said the drop could be temporary given the fact the debt ceiling was raised and the government reopened after the House GOP backed down from its insistence that ObamaCare be defunded.
The current economic slump is primarily driven by weak demand, so the blow to consumer confidence is likely to reverberate throughout the economy.
Standard & Poor's predicted this month that the shutdown will cost $24 billion and shave 0.6 percent off of gross domestic product.