US consumer confidence drops for second straight month, recession fears rise

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Wealth management professional Jeff Sica discusses concerning areas battering the American consumer on Varney & Co.

Consumer confidence fell again in September as Americans expressed greater concern that the economy could be headed for a recession.

The Conference Board's Consumer Confidence Index dropped to 103 this month, lower than the 105.5 reading analysts surveyed by Refinitv expected and the second straight decline following a two-and-a-half-year high of 114 in July. 

A shopper makes their way through a grocery store on July 12, 2023 in Miami, Florida. U.S. consumer confidence fell in September for a second straight month. ((Photo by Joe Raedle/Getty Images) / Getty Images)

Confidence remains well below a post-pandemic peak of 128.9 in June 2021, as consumers continue to grapple with high inflation, rising interest rates and recession fears.

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The Expectations Index indicating consumers' short-term optimism for the economy also fell for a second straight month in September, dropping to 73.7 from 83.3 in August. Historically, when the index drops below 80, it signals a recession within the next 12 months, the think tank said.

A dealer puts up a sign in a used car for sale at a dealership in Richmond, California, US, on Tuesday, Feb. 21, 2023. Rising prices for vehicles, housing and everyday goods continue to squeeze U.S. consumers. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)

The proportion of respondents who said a recession is «somewhat» or «very likely» rose in September, after declining in August.

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«Write-in responses showed that consumers continued to be preoccupied with rising