The Conference Board’s Consumer Confidence Index fell 6.7 points to 81.9 in September, down from 88.6 in August, according to the organization’s latest survey, released Tuesday.
The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, retreated 7.9 points to 109.3, while the Expectations Index fell 5.9 points to 63.6 — its third consecutive monthly decline. The survey period for this month’s preliminary results covered Sept. 1-23, which included a federal funds rate hike and ongoing geopolitical tensions.
“The Consumer Confidence Index deteriorated notably in September, following two prior months of softening,” Dana M. Peterson, chief economist at The Conference Board, said in a press release. “The Present Situation Index fell sharply, while the Expectations Index slipped further into negative territory. Consumer appraisals of current business conditions became negative for the first time since September 2024.”
Peterson added that consumers expect both business conditions and the labor market to weaken during the next six months, though they still anticipate rising household incomes, “but less so compared to previous months.”
Consumers’ 12-month inflation expectations rose 0.3 percentage points to an average of 6.1%, while the share expecting higher interest rates over the next year jumped 5.2 points to 68.4%.
Confidence declined across nearly all age and income groups, as well as across all political affiliations, though vacation plans held relatively steady, with 42.6% of consumers planning a trip in the next six months, up 0.5 points from August, driven entirely by domestic travel, as plans for foreign trips declined.
