“US consumer confidence has plunged since government shutdown. The daily Gallup consumer confidence index fell to minus 35 on Monday from levels around minus 15 a couple of weeks ago. The current levels are the lowest since December 2011, although well above the trough of -56 during the debt ceiling crisis of summer 2011. The Gallup index correlates closely with the monthly University of Michigan and Conference Board confidence measures.” (FT)
The fact that consumer confidence would fold as a result of all the negative writings with respect to the government shutdown and the debt ceiling discussion was quite expected. The overall effect it will have on underlying economic activity is not as transparent. Consumer Confidence closely correlates with e.g. retail sales.
Economic Confidence falls of a cliff: