The numbers here are pretty staggering. Clearly, the chaos on Wall Street has impacted shoppers on Main Street.

The Commerce Department reported Wednesday that consumer spending plunged 1 percent last month, even worse than the 0.9 percent decline that had been expected.

It says personal incomes were up 0.3 percent last month, slightly better than the 0.1 percent gain analysts had expected.

The big decline in spending in October underscores concerns that the economy is falling into a deep recession. Consumer spending accounts for two-thirds of total economic activity.

In a second report, orders to factories for durable goods fell 6.2 percent, biggest decline in two years.

And in a third report, new jobless claims fell more than expected last week from a 16-year high, the government said Wednesday, though they remain at elevated levels due to the slowing economy.

The consumer spending report was for October. The bright spot is the consumer confidence rose after its dramatic plunge. This probably means that the fall in gas prices is helping counter the problems people in their 401k's.