US Consumer Confidence Plummets Amid Broader Global Dissatisfaction

Consumer confidence in the US has fallen to its second-lowest level on record, according to data from the University of Michigan's Institute for Social Research. The preliminary September reading dropped 7.5% from August and 13.2% from a year earlier.

Goldman Sachs economist Joseph Briggs attributed the decline not only to economic factors but also to a broader sense of dissatisfaction with the world at large. 'Lower happiness' across the country, he said, contributes to the gap between survey results and data showing GDP growth.

The Great Recession-era low was 55.3, while COVID-19 never pushed the index below 71.8. The September reading fell short of both marks, with a score of 44.8. Inflation is still a concern, according to Briggs, with year-ahead inflation expectations jumping to 4.6%.

The Federal Reserve raised rates by a quarter point on September 16, citing 'inflation that's too high and has been for too long.' However, consumer confidence remains low, with sentiment worsening among both Democrats and Republicans.