US Consumer Confidence Hits Near 12-Year Low Amid Labor Market Fears

US consumer confidence hit a near 12-year low in September due to rising inflation and labour market fears. The Conference Board survey showed that households expect business and labor market conditions to deteriorate over the next six months.

The US-Israeli war has driven up energy prices, stoking inflation and prompting the Federal Reserve to raise interest rates for the first time in three years. This has manifested itself in higher prices at the pump and supermarket as well as mortgage rates.

Economists say the war has created an uncertain business environment and hindered employers' ability to hire more workers. Kyle Moore, chief economist at The Century Foundation, said that 'the economy is stagnant for the typical American household, which has been caused by the erratic public policy environment that makes it tough for businesses and households to plan for the future.'

The Conference Board's consumer confidence index plummeted 6.7 points in September to 81.9, the lowest level since April 2014. The share of consumers saying jobs were 'plentiful' dropped to 23.6%, the lowest level since February 2021, from 24.5% in August.