US Consumer Confidence Declines Due to Job Concerns Before Elections
USA: Consumer confidence sharply declined in September, primarily due to concerns about the job market before election, despite a notable rise in the proportion of Americans anticipating lower interest rates, reaching the highest level since 2020. The Conference Board’s consumer confidence index fell to 98.7 from a revised 105.6 in August, marking the largest drop since August 2021. This decline occurred against a backdrop of a half-percentage point interest rate cut by the Federal Reserve, record-high stock market performance, and ongoing economic growth. However, concerns regarding job availability post-COVID-19, after a previously robust labor market, may signal potential economic challenges ahead.
This decrease in consumer confidence contrasts with the general outlook of economists and market observers, who acknowledge a slowing economy but do not foresee an imminent recession, suggesting a return to pre-pandemic trends. In the housing market, home prices have remained resilient despite a cooling effect from high mortgage rates, which have recently decreased by about a percentage point in anticipation of the Fed's rate cuts.
Source: US News