Additional Coverage:
- Consumer confidence falls, showing largest decline in 3 years (foxbusiness.com)
Consumer Confidence Plummets Amid Economic Concerns
Consumer confidence has taken a sharp dive in September, marking its steepest decline in over three years. Americans are increasingly worried about the economy, especially the job market.
The Conference Board reported that its Consumer Confidence Index dropped to 98.7 this month, significantly down from 105.6 in August. All components of the index deteriorated, with consumers’ assessments of current business conditions and the labor market becoming more negative.
Consumers are also pessimistic about the future labor market, business conditions, and income prospects. The Present Situation Index fell to 124.3, while the Expectations Index dropped to 81.7, which typically signals an impending recession.
Despite inflation easing in August, consumers’ inflation expectations remain high at 5.2%. Concerns about rising prices and the job market are driving the decline in confidence.
The Conference Board noted that consumers are worried about fewer hours, slower payroll increases, and fewer job openings, despite the overall health of the labor market. There has also been a slight increase in the percentage of consumers who believe the economy is already in a recession.
Read More About This Story:
- Consumer confidence falls, showing largest decline in 3 years (foxbusiness.com)