U.S. Consumer Confidence Index Unexpectedly Slumps In September

(RTTNews) - A report released by the Conference Board on Tuesday unexpectedly showed a notable deterioration in U.S. consumer confidence in the month of September.

The Conference Board said its consumer confidence index slumped to 81.9 in September from a downwardly revised 88.6 in August.

Economists had expected the consumer confidence index to inch up to 90.0 from 89.4 originally reported for the previous month.

The report said the present situation index, which is based on consumers' assessment of current business and labor market conditions, tumbled to 109.3 in September from 117.2 in August.

The expectations index, which is based on consumers' short-term outlook for income, business, and labor market conditions, also fell to 63.6 in September from 69.5 in August.

"Consumer appraisals of current business conditions became negative for the first time since September 2024," said Dana M Peterson, Chief Economist, The Conference Board. "Perceptions of the current labor market also worsened, though remained within positive territory."

She added, "Over the next six months, consumers expected both business conditions and the labor market to weaken. Consumers still anticipated their household incomes to rise, but less so compared to previous months."

The Conference Board noted the survey period for this month's preliminary results was September 1-23, which included a federal funds rate hike and ongoing geopolitical tensions.

Last Friday, revised data released by the University of Michigan showed consumer sentiment in the U.S. deteriorated by less than previously estimated in the month of September.

The University of Michigan said its consumer sentiment index for September was upwardly revised to 48.1 from a preliminary reading of 47.8.

Economists had expected index to be unrevised from the preliminary reading, although the upwardly revised reading is still down from 51.7 in August.