U.S. consumer confidence sinks to lowest level since 2014, survey finds — SkimNews
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- The Conference Board said its consumer confidence index fell 6.7 points to 81.9 in September, the lowest reading since April 2014 and below the lowest level reached during the pandemic.
- The present-situation index dropped 7.9 points to 109.3 while the short-term outlook slid 5.9 points to 63.6, with write-in responses from Sept. 1–23 dominated by complaints about the high cost of gas, goods, and services.
- Consumer prices rose 3.4% year-over-year in August, with monthly inflation jumping 0.4% from July — quadrupling the 0.1% monthly increase recorded in June.
- The Federal Reserve raised its benchmark rate by a quarter point to roughly 3.9%, its first hike since 2023, and signaled another increase could come later this year.
- Gas prices average $4.46 per gallon of regular; the Fed's preferred PCE inflation gauge was 3.7% in June, up from 2.8% before the Iran war began on Feb. 28 and 2.5% when Trump was inaugurated in January 2025.
- The labor market added a surprising 162,000 jobs in August with unemployment holding at 4.1%, but average hourly wages rose just 3.1% year-over-year — the weakest gain since May 2021.
- Trump continues to blame predecessor Joe Biden for high prices, even though inflation has risen since his inauguration, framing a political risk for Republicans with the midterm elections roughly a month away.
Why it matters: Five years of elevated inflation and now-rising gas prices have pushed consumer sentiment to an 11-year low, posing a direct political threat to Trump and Republicans with midterms about a month away. The Fed's first rate hike since 2023 — to roughly 3.9% — will further raise borrowing costs for mortgages, auto loans, and credit cards.
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