The Conference Board said that its Consumer Confidence Index dropped to 87.3 for November, down nearly 8 index points from October’s 95.2 index. Economists had expected the index to be around 91.5.

The sharp drop marked the lowest confidence level since October 2005 following Hurricane Katrina and the resulting damage to oil refineries.

"Consumers’ apprehension about the short-term outlook is being fueled by volatility in financial markets, rising prices at the pump and the likelihood of larger home heating bills this winter," said Lynn Franco, director of The Conference Board Consumer Research Center, in a statement.

Two other key consumer attitude measures also fell. The Present Situation Index, measuring how consumers view the economy, dropped to 115.4 index points from October’s from 118. The Expectations Index, which measures shoppers’ outlook over the next six months, declined to 68.7 from 80.0.