US consumer confidence hits 12-year low amid inflation fears

consumer confidence interest rates inflation unemployment rate Federal Reserve

U.S. consumer confidence plummeted in September to 81.9, the lowest level since April 2014, according to The Conference Board. This decline was driven by persistent concerns regarding high fuel prices, inflation, and borrowing costs. The Present Situation Index fell to 109.3, while the Expectations Index dropped to 63.6, marking a third consecutive month of decline in outlook.

Despite a relatively stable labor market—with unemployment at 4.1% in August and 162,000 jobs added—worker anxiety is rising. The probability assigned by Americans to the unemployment rate being higher a year from now rose to 44.4% in August, the highest since the COVID-19 pandemic. This disconnect highlights a gap between current employment data and future fears regarding AI and economic stability.

In response to these economic signals, New York Fed President John Williams indicated there is no immediate urgency for further interest rate hikes following the September increase. However, he noted that a single additional upward adjustment might be appropriate by the end of the year to ensure inflation returns to the 2% target. Markets have reacted by scaling back expectations for an October rate hike.

Entities

Austin Hughes · Bureau of Labor Statistics · Credit Union Consumer Sentiment Index · Dana M. Peterson · Federal Reserve · Federal Reserve Bank of New York · Joanne Hsu · John Williams · Michael Barr · The Conference Board · United States · University of Michigan

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The University of Michigan's Survey of Consumers reported a sentiment index of 48.1, a four-month low. www.ibtimes.com · www.pymnts.com
[● 2 SOURCES] The percentage of consumers reporting plentiful jobs fell to its lowest level since 2021.
[● 3 SOURCES] Initial unemployment claims rose to 197,000 for the week ending September 19. yournews.com · dailycallernewsfoundation.org · conservativedailynews.com
[● 8 SOURCES] The Expectations Index dropped 5.9 points to 63.6. www.epochtimes.com · www.breitbart.com · ashams.com · www.thedailyupside.com
[● 13 SOURCES] The Conference Board’s Consumer Confidence Index fell 6.7 points to 81.9 in September. www.ibtimes.com · www.epochtimes.com · dailycallernewsfoundation.org · www.cfodive.com · lavozhispanact.com · +3 more
[● 3 SOURCES] The U.S. unemployment rate was 4.1% in August, with 162,000 jobs added. yournews.com · dailycallernewsfoundation.org · conservativedailynews.com
[● 3 SOURCES] Consumer views on current and future personal finances weakened by approximately 10% in September. www.ibtimes.com · www.pymnts.com
[● 6 SOURCES] The decline in consumer confidence was broad-based, affecting both current assessments and future expectations. www.ibtimes.com · www.epochtimes.com
[● 3 SOURCES] The mean probability Americans assigned to the unemployment rate being higher a year from now rose to 44.4% in August. yournews.com · conservativedailynews.com · dailycallernewsfoundation.org
[● 4 SOURCES] 68.4% of respondents expect interest rates to increase in the next year. www.ibtimes.com · www.cfodive.com · www.thedailyupside.com
[● 7 SOURCES] The Present Situation Index fell 7.9 points to 109.3. lavozhispanact.com · www.breitbart.com · ashams.com · www.thedailyupside.com · www.epochtimes.com
[○ 1 SOURCE] The share of people saying jobs were plentiful slipped to 23.6 percent. www.breitbart.com