Consumer confidence deteriorated sharply in September, as an inflation-weary public took a gloomier view of the job market and the impact rising prices would have on their finances, the Conference Board reported Tuesday.
The board’s consumer confidence index fell to 81.9, a decline of 6.7 points and well below the Dow Jones consensus forecast of 89.
Respondents cited concerns about inflation and job prospects. For the first time in the four years this survey question has existed, more respondents said their personal finances were bad rather than good.
“Consumer assessments of current economic conditions have turned negative for the first time since September 2024,” said Dana Peterson, chief economist at the Conference Board.
“Consumer written responses regarding factors affecting the economy were mostly pessimistic in September,” she added. “References to prices, the high cost of goods and services, and oil and gas prices in particular, reached new highs, reflecting the surge in fuel prices in September.”
Other figures showed a similar deterioration: the board’s current situation index fell 7.9 points to 109.3, while the expectations index, a six-month forecast window, slipped 5.9 points to 63.6.
On the labor front, the gap between those who say jobs are “plentiful” and those who say jobs are “hard to get,” a closely watched barometer of the health of the job market, has further eroded, down 2.5 percentage points to just 1.7 percent.
These results come against a backdrop of rising inflation expectations, driven by continued uncertainty over the war in Iran, which has been reflected in financial markets by rising Treasury yields and mortgage rates.
Respondents on average expect an inflation rate of 6.1%, an increase of 0.3 percentage points from August. Median expectation also increased by 0.3 points to 5.1%.
The Conference Board’s reading is consistent with similar surveys. The University of Michigan consumer survey showed confidence fell 7% in September, reaching its second lowest level on record.
In other economic news Tuesday, job openings in August fell slightly to 7.08 million, a decline of 256,000 for the month amid sharp declines in professional and business services as well as health care-related jobs, the Bureau of Labor Statistics reported. The Wall Street consensus expected 7.2 million openings.
Hires increased slightly during the month, while departures were little changed and layoffs fell slightly.
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