US consumer confidence fell significantly in September, with the Conference Board Consumer Confidence Index® declining to 98.7 from an upwardly revised 105.6 in August. This marks the largest drop since August 2021 and indicates increased pessimism about current business and labor market conditions.
The Present Situation Index, which reflects consumers' assessment of the current economic environment, fell by 10.3 points to 124.3. Meanwhile, the Expectations Index, which measures short-term outlook for income, business, and labor market conditions, dropped to 81.7, but still remained above the recession-signaling threshold of 80.
Dana M. Peterson, Chief Economist at The Conference Board, noted, "September's decline was the steepest since August 2021, with consumers expressing increased concerns about the labor market and future business conditions." Despite these concerns, the survey revealed that consumers are still keen on spending on certain services like travel and dining out, though plans to buy big-ticket items and electronic gadgets have softened.
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