US consumer confidence has fallen to its lowest level in more than 12 years, with households expecting business conditions and the labour market to deteriorate over the next six months.
The Conference Board’s consumer confidence index dropped 6.7 points in September to 81.9, its lowest reading since 2014. Economists surveyed by Reuters had expected a figure of 89.2.
Assessments of current business conditions turned negative for the first time since September 2024, while views of the labour market also weakened but remained positive.
“Consumer appraisals of current business conditions became negative for the first time since September 2024,” said Dana Peterson, chief economist at the Conference Board.
“Perceptions of the current labour market also worsened, though remained within positive territory,” she added.
Responses gathered between September 1 and 23 were largely pessimistic, with households frequently mentioning the rising cost of petrol, goods and services.
The survey followed government figures showing that consumer inflation accelerated last month. The consumer price index rose 3.4 per cent compared with a year earlier, matching the increase recorded in July, while prices climbed 0.4 per cent month on month, compared with 0.1 per cent previously.
Petrol prices also increased as fighting in the Middle East continued. The US central bank raised its benchmark interest rate two weeks ago for the first time since 2023 in an effort to contain stubbornly high inflation, and indicated that another increase could take place later this year.
