U.S. consumer confidence slipped in September to its lowest level since April. Photo from Vitaly Gariev, Unsplash.

News Release

WASHINGTON — U.S. consumer confidence slipped in September to its lowest level since April as inflation concerns and signs of a weakening job market weighed on Americans’ outlook.

The Conference Board reported Tuesday that its index fell to 94.2 from August’s 97.8, a larger drop than economists anticipated. A gauge of consumers’ short-term expectations for income, business conditions and employment declined to 73.4, well below the threshold that can indicate a looming recession. Assessments of current economic conditions also fell sharply.

Survey responses showed inflation returned as the top concern, with more consumers citing rising prices for essentials such as gas, groceries and travel. Federal data earlier this month showed overall prices rose 2.9% in August compared with a year earlier, the largest increase since January.

Core prices, which exclude food and energy, climbed 3.1% from a year ago.

The job market has also shown signs of slowing. Employers added just 22,000 jobs in August, following weak July gains, while earlier revisions cut an additional 258,000 positions from spring estimates. The unemployment rate now stands at 4.3%, the highest in nearly three years. Job openings in August held steady at 7.2 million, according to the Labor Department.

Economists say the slowdown reflects both the lingering effects of the Federal Reserve’s interest rate hikes and uncertainty surrounding federal policies, including tariffs and workforce reductions. Many companies remain cautious about hiring, waiting for greater clarity.

Consumers’ recession expectations rose modestly in September, while fewer respondents said they intended to buy a car.

Interest in home purchases ticked up to a four-month high, while demand for appliances and other durable goods was little changed.