The consumer confidence index decreased to 71.2 in October from a revised 80.2 last month, The Conference Board reported Tuesday.
The September index was originally reported as 79.7.
The present situation index fell to 70.7 from a revised 73.5, first reported as 73.2, while the expectations index dropped to 71.5 from a revised 84.7, first reported as 84.1.
Economists polled by Thomson Reuters predicted a 75.3 reading for the index.
"Consumer confidence deteriorated considerably as the federal government shutdown and debt-ceiling crisis took a particularly large toll on consumers' expectations," said Lynn Franco, director of The Conference Board's Consumer Research Center. "Similar declines in confidence were experienced during the payroll tax hike earlier this year, the fiscal cliff discussions in late 2012, and the government shutdown in 1995/1996. However, given the temporary nature of the current resolution, confidence is likely to remain volatile for the next several months."
Business conditions were called "good" by 19.0% of respondents in October, down from 20.7% in September. Those saying conditions are "bad" slid to 23.0% from 23.9%.
The percentage of consumers expecting a pickup in business conditions in the next half year slid to 16.0% from 20.6%, while 17.5% said they expect conditions to worsen, up from 10.3% in the prior month.
On the jobs front, those who believe jobs are "plentiful" slipped to 11.3% in October from 11.4% in September, while the number saying jobs are "hard to get" rose to 35.8% from 33.6%. The respondents who see fewer jobs becoming available in a half year, increased to 22.7% from 19.1%. Those expecting more jobs to become available fell to 15.3% from 16.1%, The Conference Board reported.