The U.S. Consumer Confidence Index, as reported by the Conference Board, dropped sharply in September to 98.7, missing the forecast of 103.9 and significantly lower than the previous month’s reading of 105.6. This marks the lowest level since April 2024, indicating growing pessimism among U.S. consumers regarding the economy.
Recent Consumer Confidence Trends:
- August 2024: Actual 103.3, Forecast 100.9, Previous 101.9
- July 2024: Actual 100.3, Forecast 99.7, Previous 97.8
- June 2024: Actual 100.4, Forecast 100.0, Previous 101.3
- May 2024: Actual 102.0, Forecast 96.0, Previous 97.5
Despite a positive summer trend, the sharp decline in September reverses several months of relatively stable consumer sentiment. The index previously held above 100 for four consecutive months, buoyed by slight optimism. However, the latest data indicates consumers are increasingly concerned about the economic outlook, potentially driven by factors like inflation, interest rates, and broader market uncertainty.
Highlights from Earlier in the Year:
- April 2024: Actual 97.0, Forecast 104.0, Previous 103.1
- March 2024: Actual 104.7, Forecast 106.9, Previous 104.8
- February 2024: Actual 106.7, Forecast 114.8, Previous 110.9
This downturn in consumer confidence could signal potential risks to consumer spending, which is a critical driver of U.S. economic growth. Analysts are now watching closely to see if this negative sentiment will extend into the final quarter of 2024, impacting retail sales, investments, and overall economic activity.
