US consumer confidence near 12.5-year low amid labour market fears
US consumer confidence dropped to a near 12½-year low in September, with households worried about worsening business and labor market conditions. The concern comes as energy prices rise and mortgage rates stay high, potentially affecting spending decisions ahead of the midterm elections.
What changed and why confidence fell
A Conference Board survey showed consumer confidence declined to a level not seen since early 2014. Respondents cited worries about business conditions and the job market over the next six months. The report aligns with other polls that signal softening demand as higher energy costs and mortgage rates reduce households’ disposable income.
Who is affected
Households with mortgages or plans to buy homes may feel the impact as borrowing costs rise. Workers in jobs tied to consumer spending and energy costs may also experience caution in spending. The drop in job openings suggests some cooling in hiring activity, even if layoffs remain relatively low for now.
Practical next steps for readers
If you are budgeting: review fixed costs like housing and energy to plan for higher bills. If you anticipate buying a home, consider how mortgage rates could affect affordability and mortgage options. For workers: stay informed about employment trends and consider building savings or reducing high-interest debt as rates stay elevated. For policymakers: observers may look for signals of how monetary policy and energy costs influence consumer plans, though actions depend on broader economic data.
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