US Conference Board Consumer Confidence Index experienced a sharp drop in September, falling from 103.3 to 98.7, significantly below market expectations of 103.5. This marks the largest decline in consumer confidence since August 2021. Present Situation Index, which assesses current economic conditions, plunged by -10.3 points to 124.3, while Expectations Index, which gauges consumers’ outlook on future conditions, also dropped by -4.6 points to 81.7.
Dana M. Peterson, Chief Economist at The Conference Board, commented, “Consumer confidence dropped in September to near the bottom of the narrow range that has prevailed over the past two years.” She further highlighted that the decline affected all five components of the Index, with consumers’ outlook on current business conditions turning negative. Furthermore, views on the labor market continued to soften, with growing pessimism about both future employment prospects and income expectations.
