U.S. consumer confidence unexpectedly fell in September amid mounting worries over the health of the labour market.
. Economists polled by Reuters had forecast the index rising to 104.0 from the previously reported 103.3. “The deterioration across the index’s main components likely reflected consumers’ concerns about the labour market and reactions to fewer hours, slower payroll increases, fewer job openings, even if the labour market remains quite healthy, with low unemployment, few layoffs and elevated wages,” said Dana Peterson, the chief economist at the Conference Board.
The share of consumers who viewed jobs as being “plentiful” dropped to 30.9 per cent from 32.7 per cent in August. Some 18.3 per cent of consumers said jobs were “hard to get,” up from 16.8 per cent last month. The Federal Reserve last week cut interest rates by 50 basis points to the 4.75 per cent-5.00 per cent range, the first reduction in borrowing costs since 2020, which Fed Chair Jerome Powell said was meant to demonstrate policy-makers’ commitment to sustaining a low unemployment rate.