Consumer confidence fell in September amid worsening concerns about high energy costs and general inflation, according to a monthly survey by The Conference Board published Tuesday.
“The Consumer Confidence Index deteriorated notably in September, following two prior months of softening,” said Dana Peterson, the nonprofit’s chief economist. “Over the next six months, consumers expected both business conditions and the labor market to weaken.”
The index declined by 6.7 points to 81.9, the lowest level in a dozen years. In 2014, consumer confidence was still rebounding after the 2008 financial crisis.
Oil prices have spiked as a result of the Iran War, with average prices at the pump rising from $2.98 per gallon to over $4.40 as of Wednesday. The rise in energy prices has contributed to higher overall inflation. Annual inflation was 3.4 percent in August, according to the Consumer Price Index, above the Federal Reserve’s target of 2 percent.
The University of Michigan’s Surveys of Consumers—another respected measure of Americans’ economic sentiments—also found that consumers grew more pessimistic in September.
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