US Economic Confidence Hits Lowest Point Since 2014 Amid Ongoing Inflation and War

Americans' confidence in the economy has hit its lowest point in over a decade. The Conference Board's consumer confidence index fell to 81.9 in September, down from 88.6 in August.

The drop of 6.7 points is the biggest since April 2014 and marks the lowest reading in the board's survey since then. Respondents' views of their current situation decreased by 7.9 points to 109.3, while their short-term outlook slid by 5.9 points to 63.6.

The economic uncertainty is attributed to high inflation and stagnating wages. The recent Iran war has exacerbated the issue, with gas prices averaging $4.46 per gallon of regular fuel. Inflation accelerated in August, with the consumer price index rising 3.4% year-over-year, the same as July.

The Federal Reserve responded by raising its benchmark interest rate for the first time since 2023, a move that could lead to higher borrowing costs for mortgages, auto loans, and credit cards.