Staff Reports
Consumer confidence took a nosedive in September, marking the steepest decline in more than three years. This drop, attributed to a floundering labor market and soaring pessimism about what the future holds, paints a rather bleak picture for everyday Americans. Apparently, the Biden administration’s economic policies are doing wonders—if the goal was to make folks feel uneasy about spending their hard-earned cash.
According to the Conference Board, the consumer confidence index slipped to 98.7 in September from 105.6 in August. Economists had anticipated a modest drop, but reality had other plans. Instead of a minor dip, consumers seem to be bracing for a plunge into a pool of economic uncertainty not seen since the pandemic chaos. The downward trend raises questions about how well the current administration is managing the economy—or if they even care at all.
🚨US Consumer Confidence just saw it's biggest drop in 3 years as uncertainty about the job market is now adding to cost of living stress. pic.twitter.com/oqysPkLwMU
— Nobody Special (@JG_Nuke) September 24, 2024
The decline in consumer confidence is backed by a notable decrease in the present situation index—reflecting how Americans feel about current business conditions and the job market. This facet of the index saw a sharp drop of 10.3 points, bringing it down to 124.3. Meanwhile, the expectations index, which gauges outlooks for income and labor market stability, dropped 4.6 points, inching closer to the ominous 80-point threshold often associated with impending recession. Perhaps that’s why households are tightening their belts and putting off that new car or refrigerator.
The Conference Board’s Dana Peterson pointed out that virtually all components of the index have taken a hit. With consumers feeling increasingly negative about both current and future business conditions, it’s hard to blame average Americans for opting to save rather than spend. It’s as if the general sentiment is that the government’s idea of economic recovery is not quite aligning with the realities of inflation and rising costs.
Interestingly, this decline in consumer confidence does not exist in a vacuum. Coupled with a drop in business optimism reported earlier by S&P Global, it seems that Americans are bracing for what could be a stormy economic future. Strikingly, this lack of confidence coincides with Vice President Kamala Harris creeping up in presidential election surveys—although one has to wonder how that’s working out for the rest of the country’s mood. The enthusiasm for the current administration seems to be matched only by the sinking feeling in consumers’ stomachs, particularly among those earning less than $50K, who reportedly experienced the largest confidence decline.
