Sept. 24 (UPI) — Concerns about the labor market’s future sent the Consumer Confidence Index tumbling to in September, the Conference Board reported on Tuesday.
Consumer Confidence registered at 98.7 in September, down 105.6 in August, marking the largest one-month drop since August 2021. All five components measured by the organization dropped in the September report.
The report was far off what Wall Street economists anticipated with Dow Jones consensus predicting consumer confidence would only fall to 104. The biggest categorical drop came with consumers aged 35-54 and those making less than $50,000.
“Consumer confidence dropped in September to near the bottom of the narrow range that has prevailed over the past two years,” Dana M. Peterson, chief economist at the Conference Board, said in a statement.
“September’s decline was the largest since August 2021. Consumer assessments of current business conditions turned negative while views of the current labor market situation softened further. Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income.”
The report said confidence declined this month across most income groups. It said on a six-month moving average, those making $100,000 or more remained the most positive about the economy.
Index participants remained weary about inflation despite its slowing trends. The average 12-month inflation expectations increased to 5.2% in September despite the overall drop in actual inflation and drop in some goods prices.
“The deterioration across the index’s main components likely reflect consumer concerns about the labor market and reactions to fewer hours, slower payroll increases, fewer job openings, even if the labor market remains quite healthy, with low unemployment, fewer layoffs and elevated wages,” Peterson said.
