in September dropped by the largest number of points in years as people expressed growing concerns about the slowing labor market and the overallfell to 98.7 in September, down from 105.6 the month before, the group announced on Tuesday. That is another warning signal for Vice PresidentThe index that gauges consumers’ assessment of the labor market and business conditions also dropped last month.
The expectations index, which is derived from consumers’ short-term outlook for business, income, and labor market conditions, declined by 4.6 points to 81.7. If the index is below 80, it typically signals a recession ahead, according to the Conference Board. “Consumer confidence dropped in September to near the bottom of the narrow range that has prevailed over the past two years,” Dana Peterson, the chief economist at the Conference Board, said. “September’s decline was the largest since August 2021 and all five components of the Index deteriorated. Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further.
“Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income,” Peterson added.by half of a percentage point, the first time the central bank trimmed its rates in over four years. The rate cut comes after years of near-frenzied efforts by the Fed to tamp down inflation.
The move signaled that the Fed sees the inflation threat as over, and it believes the bigger threat is the possibility of an economic slowdown and even a recession. in August, reflecting a downward trend in job creation in recent months. The unemployment rate is now 4.2%, an increase from recent lows of 3.4%. In another sign of cooling, job openings plunged in July to their lowest level since January 2021, when President Joe Biden entered office.