According to the latest report from the Conference Board, consumer confidence in the United States took a significant hit in September, declining more than initially anticipated. The monthly survey conducted by the organization revealed a confidence index of 103.0 for the month, a notable drop from the revised August figure of 108.7. Economists surveyed by Reuters had projected a more positive index of 105.5.
The report also delved into consumers’ assessments of the current economic situation, which stood at 147.1 in September, showing a slight increase from the revised August figure of 146.70. However, expectations regarding short-term prospects for income, business conditions, and the labor market plunged to 73.7, a substantial decrease from the revised August figure of 83.3.
It’s worth noting that when the expectation level falls below 80.0, it is often considered a potential indicator of an impending recession within the next year.
These findings shed light on the prevailing sentiment among consumers in the United States, highlighting concerns and uncertainties that have had a significant impact on their confidence in the country’s economic outlook.