NEW YORK / RankWire.AI / – U.S. consumer confidence experienced a sharp decline in September, reaching its lowest point since April 2014. The Conference Board reported that its Consumer Confidence Index dropped 6.7 points to 81.9, with the August figure revised downward to 88.6. The survey, conducted from September 1 to September 23, revealed consumers’ more pessimistic views on current economic conditions and expectations for the next six months. This marked the third consecutive month of declining overall confidence.
In September, the Present Situation Index fell 7.9 points to 109.3, reflecting consumers’ current perceptions of business and labor markets. Meanwhile, the Expectations Index decreased 5.9 points to 63.6, marking its third month of decline. This index gauges outlooks on income, employment, and business conditions over the upcoming half-year, indicating growing concerns about future economic prospects beyond current conditions. Households have become increasingly cautious about the economic environment ahead.
Perceptions of current business conditions weakened during the month. Only 18.5% of consumers considered conditions good, slightly below the 18.8% in August. The percentage describing conditions as bad rose to 20.4% from 17.3%. Labor market sentiment also declined, with 23.6% reporting plentiful jobs, down from 24.5% in August, while 21.9% said jobs were hard to find, up from 20.3% the previous month.
Inflation expectations increase amid rising gasoline prices
Consumers anticipate higher inflation over the next year, with average 12-month inflation expectations rising 0.3 percentage points to 6.1%. The median expectation increased to 5.1%. According to federal data, consumer prices climbed 3.4% in August compared to the previous year. The U.S. Bureau of Labor Statistics also reported a 3.9% monthly rise in gasoline prices. On September 29, AAA estimated the national average for regular gasoline at approximately $4.46 per gallon.
The survey also showed softer spending intentions across several categories. Plans to purchase vehicles and homes over the next six months declined, and expected spending on services such as hotels, movies, air travel, and amusement parks also decreased during September. Conversely, vacation plans increased slightly, with 42.6% of consumers intending to travel within six months—up 0.5 percentage points from August—primarily driven by stronger domestic travel plans.
Outlooks for business, employment, and household income weaken further
Expectations for economic growth, employment, and income deteriorated further. Only 15.9% of respondents anticipated improved business conditions, down from 17.0% in August, while 25.4% expected conditions to worsen, up from 23.3%. Only 14.0% foresaw more available jobs, whereas 28.4% predicted fewer jobs. Income expectations also softened, with 17.9% expecting rises and 15.4% anticipating decreases over the next six months.
The Conference Board also noted a decline in household financial outlooks. The net assessments of current family finances turned negative for only the second time in four years. Confidence levels declined across all age groups on a six-month average, and nearly all income brackets showed lower scores. Toluna conducted the monthly online survey for The Conference Board, with September’s preliminary results closing on September 23. The next Consumer Confidence Index release is scheduled for October 27.