A report released on September 30 by the U.S. research agency World Federation of Large Enterprises showed that the U.S. consumer confidence index in September was 94.2, down 3.6 points from August, reaching its lowest level since April.
Among the components of the index, consumers 'assessment of current business and job market conditions fell 7 points to 125.4. The consumer expectations index, which reflects short-term income prospects, business and job market conditions, fell back to 73.4, significantly below the critical point of 80, which usually suggests a recession.
The report showed that the percentage of respondents who thought jobs were “sufficient” fell to 26.9%, down more than 3 percentage points compared to August, while the percentage of respondents who thought jobs were “difficult to find” remained at 19.1%. In addition, people’s pessimism about their financial situation was stronger, with views about their current financial situation showing the biggest monthly drop since July 2022.
Stephen Gisher, senior economist at the agency, said: “Consumers are far less optimistic about the business situation than they have in recent months, while their feelings about the current employment situation have fallen for the ninth consecutive month, reaching a new low in years.”
Experts believe that when Fed officials consider the next interest rate trend, labor market stability is an important consideration. It is widely expected that the Federal Reserve will cut its benchmark interest rate by 0.5 percentage points before the end of the year.