Consumer confidence in the U.S. dropped sharply in September, reaching its lowest level since 2014, according to the Conference Board. The Consumer Confidence Index fell 6.7 points to 81.9, significantly below expectations. Survey respondents expressed growing worries about inflation and the labor market, marking the first time more people rated their personal finances as poor rather than good over the four-year life of the survey question.

Dana Peterson, Chief Economist at the Conference Board, highlighted that this decline included the first negative appraisal of current business conditions since 2024. Cost concerns were particularly pronounced, with consumers pointing to rising prices for goods and services, especially fuel, which surged in September. The Present Situation Index and Expectations Index also dropped, reflecting a pessimistic outlook on both immediate and six-month economic prospects.

The labor market showed signs of strain as well. The gap between respondents who said jobs were plentiful and those who found them hard to get shrank to 1.7%, a key indicator of employment health. Economic uncertainty linked to geopolitical factors, such as the Iran conflict, contributed to heightened inflation expectations, which averaged 6.1% for the near term, up 0.3 points from the previous month.

Additional data from the Bureau of Labor Statistics indicated job openings slid in August to 7.08 million, below expectations, particularly in professional, business services, and healthcare sectors. Despite this, hires edged up, quits remained steady, and layoffs saw a slight decline. Taken together, these factors underscore growing unease about the economy’s direction amid persistent inflationary pressures.