WASHINGTON, Sept. 29 (Xinhua) -- U.S. consumer confidence dropped in September to the lowest level since 2014, according to data released Tuesday from the Conference Board.
The Conference Board's consumer confidence index fell by a substantial 6.7 points to 81.9 in September, down from 88.6 in the month prior.
"The consumer confidence index deteriorated notably in September, following two prior months of softening," said Dana M. Peterson, chief economist at the Conference Board.
"Consumers' write-in responses regarding factors affecting the economy were mostly pessimistic in September. References to prices, the high cost of goods and services, and oil and gas prices in particular, rose to new heights, reflecting September's surge in fuel costs," Peterson said.
"Comments about war (and) conflict eased this month but remained elevated. Consumers also frequently cited politics, trade and employment in their write-in responses, though to a lesser extent," Peterson added.
Some experts noted this is one of the most negative consumer confidence reports they've seen in some time.
Dean Baker, a macroeconomist and co-founder of the Center for Economic and Policy Research, told Xinhua: "This is one of the most negative reports I've seen. Pretty much everything in it is negative, both current conditions and future expectations."
"Also, it is people assessing their own situation, not just saying the economy is bad. The percent saying their situation is good is less than the period coming right out of the pandemic and the percent saying it is bad is higher. People are not feeling good about the world," Baker said.
On a six-month moving average basis, confidence across all age groups and nearly all income groups trended downward.
By generation, confidence for Gen Z, followed by Millennials, remained the highest on a six-month moving average basis, while confidence among the three oldest generations (Generation X, Baby Boomers and the Silent Generation) continued to weaken.
Consumers' average and median 12-month inflation expectations rose 0.3 points in September to 6.1 percent and 5.1 percent respectively. The share of consumers anticipating higher interest rates over the next 12 months jumped by 5.2 points to 68.4 percent. Consumers still largely expected stock prices to rise in the next 12 months, but optimism moderated in September.
Consumers' net views of their family's current financial situation turned negative in September, as the share of consumers who said their finances were "bad" rose to overtake those saying "good" for the second time since the question was introduced four years ago.
Views of people's family's future financial situation over the next six months were somewhat less optimistic. The share of consumers who believed a U.S. recession over the next 12 months is "somewhat likely" rose while those who believe recession is "not likely" declined. ■
