US Consumer Confidence Drops Again in September Amid Economic Concerns
The latest results from the Conference Board Consumer Confidence Index® have shown a significant downturn in consumer optimism for September 2025. The index dropped 3.6 points to 94.2, a stark decline from the previous month’s 97.8. This dip highlights an ongoing trend of erosion in consumer confidence that has been noted since early 2025.
The Present Situation Index, which reflects consumers' views on the current business and labor market conditions, experienced a notable decrease of 7.0 points, settling at 125.4. This is indicative of growing discontent regarding the economic climate, as fewer individuals are reporting favorable business conditions. In September, only 19.5% of consumers perceived business conditions as 'good', down from 21.8% in August, while those considering conditions 'bad' increased from 14.6% to 15.4%.
The labor market outlook also appears bleak, with only 26.9% of respondents indicating that jobs are 'plentiful', a decrease from 30.2% in the previous month. This drop marks a continued sentiment of scarcity in job availability, with consumers expressing concerns about future employment opportunities. The data reveals that confidence varies significantly among different demographic groups; while younger consumers (under 35) reported an increase in confidence, older consumers saw a decline.
Concern over inflation has taken center stage once again, with mentions of prices and inflation being the most significant factors impacting consumer sentiment. While the average 12-month inflation expectations slightly decreased from 6.1% to 5.8%, they remain troublingly high compared to the end of 2024 levels.
The perception of individuals regarding their financial situation worsened dramatically in September, with notable downward movement observed. This drop in sentiment has led to increased speculation regarding the probability of a recession, with a growing share of consumers believing it is imminent within the next 12 months. Specifically, consumers’ assessments of their current financial situation recorded the steepest monthly decline since data collection began in July 2022.
In terms of consumer spending, September saw a decline in purchasing plans for both used and new cars. Conversely, there was a notable increase in purchasing intentions for homes, reaching a four-month high. However, the overall plans for buying big-ticket items remained varied: while intentions to purchase televisions and dryers increased, interest in refrigerators saw a significant decline. As for electronics, intentions remained stronger, especially for smartphones, though service-related purchases took a downturn, particularly in travel.
Looking ahead, the expectations index—a measure of consumers' future outlook on income, business, and job conditions—also mirrored this negative sentiment, albeit with a lesser degree of decline. While pessimism about job availability increased slightly, optimism surrounding future income prospects slightly improved. 17.6% of consumers anticipate increases in income, although this is a small drop from the prior month.
As the landscape of consumer confidence shifts, the implications for the economy remain significant. The infusion of rising prices, stagnant wage growth, and fluctuating employment metrics cast a shadow over the financial prospects of many households. Therefore, continuous monitoring of these trends is essential as we navigate the complexities of the economic environment in the coming months.
Current Economic Perspective
The Present Situation Index, which reflects consumers' views on the current business and labor market conditions, experienced a notable decrease of 7.0 points, settling at 125.4. This is indicative of growing discontent regarding the economic climate, as fewer individuals are reporting favorable business conditions. In September, only 19.5% of consumers perceived business conditions as 'good', down from 21.8% in August, while those considering conditions 'bad' increased from 14.6% to 15.4%.
Labor Market Assessment
The labor market outlook also appears bleak, with only 26.9% of respondents indicating that jobs are 'plentiful', a decrease from 30.2% in the previous month. This drop marks a continued sentiment of scarcity in job availability, with consumers expressing concerns about future employment opportunities. The data reveals that confidence varies significantly among different demographic groups; while younger consumers (under 35) reported an increase in confidence, older consumers saw a decline.
Inflation and Economic Expectations
Concern over inflation has taken center stage once again, with mentions of prices and inflation being the most significant factors impacting consumer sentiment. While the average 12-month inflation expectations slightly decreased from 6.1% to 5.8%, they remain troublingly high compared to the end of 2024 levels.
Current Financial Situation
The perception of individuals regarding their financial situation worsened dramatically in September, with notable downward movement observed. This drop in sentiment has led to increased speculation regarding the probability of a recession, with a growing share of consumers believing it is imminent within the next 12 months. Specifically, consumers’ assessments of their current financial situation recorded the steepest monthly decline since data collection began in July 2022.
Changes in Purchasing Intentions
In terms of consumer spending, September saw a decline in purchasing plans for both used and new cars. Conversely, there was a notable increase in purchasing intentions for homes, reaching a four-month high. However, the overall plans for buying big-ticket items remained varied: while intentions to purchase televisions and dryers increased, interest in refrigerators saw a significant decline. As for electronics, intentions remained stronger, especially for smartphones, though service-related purchases took a downturn, particularly in travel.
Consumer Outlook Moving Forward
Looking ahead, the expectations index—a measure of consumers' future outlook on income, business, and job conditions—also mirrored this negative sentiment, albeit with a lesser degree of decline. While pessimism about job availability increased slightly, optimism surrounding future income prospects slightly improved. 17.6% of consumers anticipate increases in income, although this is a small drop from the prior month.
As the landscape of consumer confidence shifts, the implications for the economy remain significant. The infusion of rising prices, stagnant wage growth, and fluctuating employment metrics cast a shadow over the financial prospects of many households. Therefore, continuous monitoring of these trends is essential as we navigate the complexities of the economic environment in the coming months.
Topics Consumer Products & Retail）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.