US Consumer Confidence Falls to Lowest Level in 12 Years
Consumer confidence in the United States fell in September to its weakest point in twelve years, according to data released Tuesday by the Conference Board.
The board's Consumer Confidence Index came in at 81.9 for the month, a decline of 6.7 points compared with August. That is the lowest reading for the gauge since 2014, a period when sentiment was still recovering from a trough below 30 recorded during the financial crisis.
The Expectations Index, which tracks how consumers see economic conditions over the coming six months, also moved lower in September, shedding 3.2 points to sit just under 60. That measure had slipped beneath the 60 mark last year, something it had not done since 2013.
Inflation has now stayed above the Federal Reserve's 2 percent target for more than five years, and it has climbed this year as a result of the war with Iran.
The Middle Eastern conflict reached its seven-month mark on Monday. It has driven energy prices higher because of restrictions the Islamic Republic has placed on shipping through the Strait of Hormuz.
Dana Peterson, the Conference Board's chief economist, pointed out that September marked the first time in two years that consumers gave negative assessments of current business conditions.
"Perceptions of the current labor market also worsened, though remained within positive territory," Peterson said in the board's data release. "Over the next six months, consumers expected both business conditions and the labor market to weaken."
She added: "Consumers still anticipated their household incomes to rise, but less so compared to previous months."
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