US consumer confidence fell sharply this month as persistent fears about joblessness darkened the mood in spite of a stock market rally and a rebound in home prices.

The Conference Board's latest index of consumer confidence fell from 53.4 in September to 47.7, the biggest drop in eight months. Even more alarming was the plunge in sentiment about "current conditions" which fell to a 26-year low and is in step with the rising unemployment rate, which has reached its highest level since 1983.