U.S. Consumer Confidence Falls Again in September Amid Inflation Worries/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. consumer confidence slid for the second straight month in September, hitting its lowest level since April. Americans are increasingly worried about persistent inflation and signs of weakness in the job market. The decline raises concerns about household spending heading into the fall, even as unemployment remains historically low.
U.S. Consumer Confidence Report — Key Takeaways
- Consumer confidence index fell to 94.2 in September, down from 97.8 in August.
- Lowest level since April, when new tariffs were introduced by the Trump administration.
- Short-term expectations index dropped to 73.4, far below the 80 threshold that signals recession risk.
- Current conditions index fell by 7 points to 125.4.
- Inflation is consumers’ top concern again, with mentions of rising prices increasing in survey responses.
- Inflation rose 2.9% in August, the sharpest jump since January, driven by gas, grocery, and airfare costs.
- Job market shows cracks: only 22,000 jobs added in August, unemployment up to 4.3%.
- Job openings held steady at 7.2 million in August, according to Labor Department data.
- Trump’s tariffs, immigration policies, and federal workforce cuts are fueling uncertainty for employers.
- Next jobs report due Friday, with economists forecasting 50,000 new jobs.
Deep Look
Consumer Confidence Slides for Second Month
WASHINGTON — American consumers are growing increasingly uneasy about the economy. The Conference Board reported Tuesday that its consumer confidence index fell to 94.2 in September, down from 97.8 in August. Analysts had expected a smaller dip, making the 3.6-point slide more concerning.
It marked the lowest confidence reading since April 2025, when President Donald Trump rolled out sweeping tariff policies. Confidence levels are often viewed as a barometer of future spending trends, and September’s report suggests households could tighten their wallets heading into the holiday season.
Pessimism About the Future
The Conference Board’s expectations index, which measures consumers’ outlook on income, business conditions, and jobs, fell to 73.4. Any figure below 80 historically signals that a recession may be on the horizon.
Meanwhile, the present situation index, which gauges how Americans view current economic conditions, dropped by 7 points to 125.4. This decline indicates households are not only nervous about the future but also less satisfied with today’s economy.
Inflation Tops Concerns Again
Survey responses reveal that inflation is once again the number one concern. Mentions of high prices rose in September, surpassing tariffs as the biggest economic worry.
Government data released earlier this month confirmed that inflation accelerated in August. Consumer prices rose 2.9% year over year, up from 2.7% in July. Core inflation, which excludes food and energy, held at 3.1%.
Americans are feeling the pinch at the pump, grocery store, and even when booking travel. Gas, groceries, and airfares all climbed last month, underscoring why households are more anxious about rising costs.
A Cooling Labor Market
Although unemployment remains historically low, cracks in the job market are starting to appear. In August, U.S. employers added just 22,000 jobs, following July’s weak 79,000. Revisions to earlier months cut an additional 258,000 jobs from previous totals, painting a weaker picture of hiring this year.
The unemployment rate now stands at 4.3%, the highest level since October 2021. At the same time, job openings held steady at 7.2 million in August, according to the Labor Department. The data suggest employers are cautious: they are posting openings but slow to actually hire.
Policy Pressures and Business Uncertainty
Economists say the labor slowdown reflects both the lingering effects of the Federal Reserve’s 11 interest rate hikes in 2022 and 2023 and the uncertainty created by Trump’s economic policies.
Tariffs have made it harder for companies to plan, while crackdowns on immigration and reductions in the federal workforce have added more volatility. Many employers are effectively stuck in a “no hire, no fire” mode, waiting for clarity before expanding payrolls.
“Businesses don’t want to take risks until they know where tariffs and trade policy are heading,” one analyst noted.
What’s Next: September Jobs Report
The next big test comes Friday when the Labor Department is scheduled to release the September jobs report. Economists forecast 50,000 jobs added, which would mark a modest rebound from August but still far below the robust gains of prior years.
However, the release of the report could be delayed if the U.S. government shuts down due to the current budget standoff in Congress.
Why It Matters
Falling consumer confidence matters because household spending drives about two-thirds of U.S. economic activity. If Americans continue to feel squeezed by rising prices and an uncertain job market, retail sales, housing demand, and even travel could all take a hit heading into the winter.
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