US consumer confidence falls amid inflation concerns

U.S. consumer confidence fell to a four-month low in September, according to the University of Michigan survey. The index dropped to 48.1 points from August's 51.7, driven by growing concerns regarding inflation and its impact on purchasing power.

Consumers now anticipate that inflation will reach 4.6 percent over the next 12 months. Joanne Hsu, director of consumer surveys at the University of Michigan, noted that assessments of both current and future personal financial situations declined by approximately 10 percent this month. Factors contributing to the downturn include rising fuel prices and potential trade disputes.

In contrast to the decline in consumer sentiment, the labor market remains resilient. Weekly initial unemployment claims fell by 1,000 to 197,000 for the week ending September 19, marking one of the lowest levels since 1969. This suggests that while households are feeling the pressure of high living costs and mortgage rates exceeding 7 percent, widespread layoffs have not yet materialized.