US Consumer Confidence Declines in September Amid Labor Market Concerns, Reports Reuters

U.S. Consumer Confidence Declines in September Amid Labor Market Concerns

Consumer confidence in the United States experienced an unexpected decline in September, fueled by growing anxieties regarding the labor market’s health.

The Conference Board reported that its consumer confidence index fell to 98.7 this month, down from an upwardly revised 105.6 in August. This marks the most significant drop since August 2021. Economists had anticipated an increase in the index to 104.0 from a previously reported 103.3.

Dana Peterson, the chief economist at the Conference Board, noted that the decline in the index’s key components likely reflects consumer worries related to the labor market. These concerns stem from reduced working hours, slower payroll growth, and fewer job openings, despite the labor market remaining relatively strong with low unemployment rates, minimal layoffs, and high wages.

Additionally, the percentage of consumers who perceived jobs as "plentiful" decreased to 30.9% from 32.7% in August. Conversely, those who felt that jobs were "hard to get" increased to 18.3%, up from 16.8% the previous month.

In related news, the Federal Reserve recently lowered interest rates by 50 basis points, setting them in the 4.75%-5.00% range. This change marks the first reduction in borrowing costs since 2020, aimed at reinforcing policymakers’ commitment to maintaining a low unemployment rate.