American consumers are feeling less confident this month as concerns about jobs rise significantly, according to the Associated Press.
The Conference Board, a business research group, said today that its consumer confidence index fell to 98.7 in September, from 105.6 in August. It was the biggest month-to-month decline since August 2021. The survey was conducted before the Federal Reserve announced a bigger-than-expected half-point interest rate cut last week.
The consumer confidence index measures both Americans’ assessment of current economic conditions and their outlook for the next six months. The measure of Americans’ short-term expectations for income, business, and the job market fell to 81.7 from 86.3 in July. A reading under 80 can signal a potential recession in the near future.
The Conference Board reported today that consumers’ view of current conditions fell to 124.3 in September from 134.3 last month. Consumer spending accounts for nearly 70% of U.S. economic activity and is closely watched by economists for signs of how the American consumer is feeling.
