The Conference Board reported a notable drop in its Consumer Confidence Index, which fell to 81.9, a decrease of 6.7 points and below the Dow Jones forecast of 89. This decline marks the first time in the survey's four-year history that more respondents rated their personal finances as bad rather than good.
Dana Peterson, the chief economist at the Conference Board, noted that consumer perceptions of current business conditions turned negative for the first time since September 2024. The survey highlighted rising worries about inflation, particularly regarding the costs of goods and services, including oil and gas, which surged in September.
The Present Situation index also fell by 7.9 points to 109.3, while the Expectations Index dropped 5.9 points to 63.6. Additionally, the labor market sentiment worsened, with the gap between those perceiving jobs as plentiful versus hard to get decreasing by 2.5 percentage points to 1.7%.
Inflation expectations rose, with respondents anticipating an average inflation rate of 6.1%, up 0.3 percentage points from August. This sentiment aligns with findings from the University of Michigan's consumer survey, which reported a 7% decline in sentiment to its second-lowest level on record.
In related economic news, job openings fell to 7.08 million in August, below the expected 7.2 million, indicating potential challenges in the labor market. These developments suggest that consumer spending may slow, impacting overall economic growth and market performance