Rome, Oct 26 (IANS/AKI): Italian consumer confidence in October fell to its lowest level in more than three years amid concern that efforts to cut spending in Europe's second most indebted country could lead to recession.

The sentiment index fell to 92.9 from 94.2 in September, Rome-based national statistics office Istat said Tuesday. It was the lowest reading since July 2008.

The Italian government last month passed a series of measures that aims to cut 54 billion euros in spending and balance the budget in 2013.

That has done little to calm investor jitters that the country will have trouble paying interest on its 1.9 trillion-euro debt prompted the European Union to call on Prime Minister Silvio Berlusconi's government to implement reforms.

The austerity plans in Italy and elsewhere has raised the possibility that government spending cuts affect consumer income and spending, leading to recession.

Italy's sluggish economic growth in September led to downgrades by the three main rating companies.