U.S. consumer confidence unexpectedly fell in September amid growing concerns about the health of the labor market.
The Conference Board said Tuesday its consumer confidence index fell to 98.7 this month from an upwardly revised 105.6 in August.
The decline was the biggest since August 2021. Economists polled by Reuters had forecast the index would rise to 104.0 from a previously reported 103.3.
“The deterioration in the major components of the index likely reflected consumer concerns about the labor market and reactions to fewer hours, slower payroll increases, fewer job openings, even as the labor market remains fairly healthy, with low unemployment, few layoffs and high wages,” said Dana Peterson, chief economist at the Conference Board.
The percentage of consumers who believe jobs are “plentiful” fell to 30.9% from 32.7% in August. 18.3% of consumers said jobs were “hard to come by,” down from 16.8% last month.
Last week, the Federal Reserve cut interest rates by 50 basis points to a range of 4.75% to 5.00%, the first reduction in borrowing costs since 2020, which Fed Chair Jerome Powell said was intended to demonstrate policymakers’ commitment to keeping unemployment low.
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