US consumer confidence plunges to 12-year low as households fear weaker jobs, economy
Consumer confidence in the US experienced a notable decline in September, reaching its lowest level since 2014. This drop suggests households envision a weakening economy and labor market in the coming months. The Conference Board's index fell by 6.7 points, significantly below economists' expectations. While perceptions of the current labor market worsened, they still remained in positive territory for now.
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US consumer confidence fell sharply in September to its lowest level in more than 12 years, with households expecting business conditions and the labour market to weaken over the next six months, according to a survey reported by Reuters on Tuesday.The Conference Board’s consumer confidence index dropped 6.7 points to 81.9 this month, its lowest reading since 2014 and well below the 89.2 expected by economists polled by Reuters.The decline points to growing caution among US households, with perceptions of both current economic conditions and the future outlook deteriorating.
Consumer expectations are closely watched because weaker confidence can translate into softer household spending, a key driver of the US economy.“ Consumer appraisals of current business conditions became negative for the first time since September 2024,” Dana Peterson, chief economist at the Conference Board, said.Moreover, perceptions of the current labour market also worsened, although they remained in positive territory.