US consumer confidence plunges to worst numbers in 3 years as Americans grapple with inflation

US consumer confidence plunged in September by the most in three years as Americans continue to grapple with high prices and a shaky labor market.The Consumer Confidence Index plummeted 6.9 points in September to 98.7 – the steepest drop since August 2021, according to data released Tuesday.The data came in well below economists’ expectations, according to a Bloomberg survey.Consumers most often mentioned high prices and inflation as factors influencing their view of the economy, The Conference Board said.

Those between the ages of 35 and 54 and those making less than $50,000 annually showed the largest drops in confidence, according to The Conference Board. While inflation appears to be cooling, prices are still up more than 16% over the past three years as the job market shows signs of weakness, Cody Moore, the head of growth strategies at Wealth E&P, said.“This has left consumers worried, not only about rising costs but also about the stability of their jobs in combination with the unknown of the upcoming election,” Moore told The Post.Dana Peterson, chief economist at The Conference Board, said the drop in consumer confidence was likely tied to the job market and “reactions to fewer hours, slower payroll increases, fewer job openings — even if the labor market remains quite healthy, with low unemployment, few layoffs and elevated wages.”Though the Federal Reserve cut interest rates by half a percentage point on Wednesday – at the top of economists’ expected range – consumers won’t reap the benefits immediately.“Prices, particularly at the grocery [store] and for gas, continue to rise and interest rate cuts will take some time to filter down to credit card rates and mortgages,” SMI Group CEO Kenin Spivak told The Post. A measure of consumer expectations for the next sixth months dropped by 4.6 points to 81.7 – hovering just above a reading less than 80, which typically indicates a recession, The Conference Board said.A measure o...