US consumer confidence fell sharply in September, reaching its lowest level in more than 12 years. Households have become increasingly concerned about the economic outlook, particularly business conditions and the labor market.
According to a survey released Tuesday, consumers expect both business activity and employment conditions to weaken over the next six months.
Consumer Confidence Index Drops to 81.9
The Conference Board reported that its Consumer Confidence Index dropped by 6.7 points in September to 81.9. This marks the weakest reading since 2014.
The decline was also significantly worse than economists had expected. Analysts surveyed by Reuters had forecast the index to come in at 89.2.
The weaker-than-expected reading highlights growing uncertainty among US households about the strength of the economy.
Concerns Over Business Conditions and Jobs Increase
Dana Peterson, chief economist at the Conference Board, said consumers’ assessment of current business conditions turned negative for the first time since September 2024.
Views of the US labor market also deteriorated during the month. However, perceptions of employment conditions remained in positive territory despite the decline.
The latest figures suggest that American consumers are becoming more cautious as concerns about economic growth and the job market continue to increase.
