US consumer confidence fell in September, with Conference Board index slipping to 94.2 from 97.8, missing expectations of 95.9 and marking the weakest reading since April. Present Situation Index dropped -7 points to 125.4, its largest decline in a year. Expectations Index edged lower by -1.3 points to 73.4, remaining below the recession threshold of 80 for the eighth consecutive month.
According to Stephanie Guichard of the Conference Board, the present situation component registered its largest drop in a year, with consumers less positive on business conditions and increasingly cautious about job availability. She noted that the appraisal of current job openings has now declined for nine straight months to a multi-year low.
While consumers were somewhat more pessimistic on future jobs and business conditions, optimism over future incomes improved. That helped limit the drop in the Expectations Index, but overall sentiment points to lingering household caution heading into Q4.
