US consumer confidence tumbles in September as American anxiety about the future grows
The American consumer is feeling less confident this month, particularly about the future, as expectations persist that interest rates will remain elevated for an extended period
WASHINGTON — The confidence of American consumers slipped this month, particularly about the future, as expectations persist that interest rates will remain elevated for an extended period.
The Conference Board, a business research group, said Tuesday that its consumer confidence index fell to 103 in September from 108.7 in August. Analysts were expecting a smaller decrease, to a reading of 105.
The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
Most troubling was the decline in the index measuring future expectations, which tumbled to 73.7 in September from 83.3 in August. Readings below 80 for future expectations historically signal a recession within a year.
Relatedly, consumers' perceived likelihood of a recession in the next year rose, after it declined over the summer.
«Consumers may be hearing more bad news about corporate earnings, while job openings are narrowing, and interest rates continue to rise — making big-ticket items more expensive,» said Dana Peterson, chief economist at The Conference Board.
The downturn in spending is beginning to reveal itself in the quarterly financial reports of some of the nation's biggest retailers. Target recently reported its first quarterly sales decline in six years. Home Depot, the nation’s largest home improvement retailer, also reported a decline in sales, with a fall-off in big-ticket items like appliances and other things that often require financing.
Best Buy’s sales and profits slid in the second quarter as the nation’s
Read more on abcnews.go.com
