Economic Confidence Hits Decade-Low Amid Ongoing Inflation Concerns
Americans' confidence in the economy has plummeted to its lowest level since April 2014, according to a recent survey by The Conference Board. The consumer confidence index fell 6.7 points to 81.9 in September, down from 88.6 in August. This marks the lowest reading in over a decade and surpasses the lows reached during the pandemic.
The survey also revealed that respondents' views of their present situation dropped by 7.9 points to 109.3, while their short-term outlook slid by 5.9 points to 63.6. The main concerns expressed by respondents were high gas prices and rising costs for goods and services.
The Federal Reserve has raised its benchmark interest rate to about 3.9% in an effort to quell stubbornly high inflation, which accelerated last month with a 0.4% increase from July. This is the first rate hike since 2023, and another potential hike could occur later this year.
Gas prices are currently averaging $4.46 per gallon of regular gasoline, while prices for appliances, car repairs, and wireless phone services also jumped in August. The ongoing Iran war has contributed to rising costs and concerns about the economy.