Brief
American consumer confidence hits decade‑low amid inflation and Iran war
The Conference Board’s survey shows a sharp drop in confidence, raising concerns for President Trump ahead of mid‑term elections.
By Felo News Desk · Published
The Conference Board released data on Tuesday showing American consumer confidence fell to 81.9 in September, the lowest level recorded since April 2014. The drop of 6.7 points from August’s 88.6 reflects growing worries over persistent inflation, stagnant pay growth and the ongoing war in Iran.
Public evaluation of present conditions fell 7.9 points to 109.3, while expectations for the short‑term future slipped 5.9 points to 63.6. Dana Peterson, chief economist at the Conference Board, said the index “deteriorated notably in September, following two prior months of softening,” and noted that business‑condition perceptions turned negative for the first time since September 2024.
Inflation has continued to climb since President Donald Trump took office, with the consumer price index rising 3.4% year‑over‑year in August, matching July’s rate. Rising fuel prices linked to Middle East hostilities are cited by respondents as a key concern.
These figures come just weeks before the U.S. mid‑term elections, adding potential political pressure on the Republican Party as voters grapple with cost of living issues.
Key facts
- Consumer confidence index fell to 81.9 in September (independent.co.uk)
- Lowest level since April 2014 (independent.co.uk)
- Public evaluation of present conditions dropped to 109.3 (independent.co.uk)
- Expectations for the short‑term future slipped to 63.6 (independent.co.uk)
- Inflation rate 3.4% year‑over‑year in August (independent.co.uk)
Background
The decline follows a trend of falling confidence amid rising inflation and geopolitical tensions. Earlier Felo coverage noted a surge in U.S. AI spending and a shift in economic priorities, but did not address consumer sentiment directly.
Why it matters
The dip signals consumer anxiety that could influence spending patterns and electoral outcomes.
What happens next
The Conference Board will publish the next monthly report in early October.
