U.S. consumer confidence slumped to a four-month low in September, dampened by a deteriorating outlook for the economy and labor market.
The Conference Board’s index declined to 103 this month from an upwardly revised 108.7 in August, data out Tuesday showed. The figure fell short of the median estimate of 105.5 in a Bloomberg survey of economists.
The group’s gauge of current conditions rose slightly to 147.1. A measure of expectations — which reflects consumers’ six-month outlook — fell to 73.7, the lowest since May. A reading below 80 historically signals a recession within the next year.
Despite greater confidence among economists that the U.S. can avert a recession, American workers are increasingly concerned about their finances and employment prospects.
“Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for groceries and gasoline in particular,” Dana Peterson, chief economist at the Conference Board, said in a statement. “Consumers also expressed concerns about the political situation and higher interest rates.”
Source : The Daily