By Axios | Created at 2024-09-24 16:09:09 | Updated at 2024-09-30 07:26:53
5 days ago
Consumer confidence plunged by the most in three years this month as more Americans adopt increasingly negative perceptions of the current and future economy.
The big picture: The Conference Board's Consumer Confidence Index fell almost 7 points to 98.7 in September — the biggest monthly drop since September 2021.
Why it matters: It's not just monetary policy officials who are worried about a labor market slowdown. Consumers became more pessimistic about the economy this month than in years past — largely because of a darkening outlook on employment.
What they're saying: The deterioration "likely reflected consumers' concerns about the labor market and reactions to fewer hours, slower payroll increases, fewer job openings," Dana Peterson, the group's chief economist, said in a release.
- That is despite signs of a healthy labor market, with low unemployment and layoffs, Peterson added.
- About 31% of consumers said jobs were plentiful, down almost 2 points from August. The share of those who said jobs were "hard to get" jumped 1.5 percentage points to 18.3%.
The intrigue: Concerns about inflation haven't been totally supplanted by job market worries.
- The Conference Board says that "prices" and "inflation" are most commonly cited as factors affecting consumers' view of the economy.
- But more consumers this month pointed out that inflation had receded.
Of note: The Conference Board said write-in responses about election concerns remain below those seen ahead of the 2020 and 2016 elections.
