[News] U.S. Consumer Confidence Index Plummets in September, Marking the Largest Decline in Nearly Three Years

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The U.S. Consumer Confidence Index for September dropped sharply to 98.7 from 105.6 in the previous month, a decline of 6.5%, marking the largest decline since August 2021, according to data released by the U.S. Conference Board on September 24.

According to the report, the decline primarily reflects concerns among consumers regarding the outlook for the U.S. labor market. The percentage of consumers who believe jobs are currently hard to get increased to 18.3% (from 16.8%), while those expecting fewer job in the future rose to 18.3% (from 17%).

Despite the unemployment rate remaining at historic lows and layoffs being relatively limited, the proportion of consumers who think the economy has already entered a recession increased slightly compared to the previous month.

Inflation remains a critical factor influencing consumer confidence. Although inflation is steadily returning to the Federal Reserve’s target range, the report indicated that consumers’ inflation expectations for the next 12 months rose to 5.2% (from 5.0%). However, the percentage of consumers expecting inflation to decrease saw a slight increase.

Additionally, after the stock market’s volatility in August, the proportion of consumers expecting stock prices to fall over the next year declined to 25% (from 26.7%).

On the family’s financial situation, the survey revealed that consumer purchasing plans have shown a divided trend. There has been a slowdown in plans to purchase electronics, particularly smartphones and laptops/desktops. However, purchasing plans for homes and new vehicles have improved slightly, likely reflecting the Federal Reserve’s recent rate cuts.