Consumer confidence took a sharp downturn this month, as worries over the labor market and broader economic outlook took center stage, according to new data released Tuesday by the Conference Board. The confidence index fell by 6.9 points, marking the most significant drop in three years.
Concerns about job availability deepened, with a continued seven-month decline in the number of consumers stating that jobs were plentiful. Meanwhile, the share of respondents claiming jobs were hard to get reached the highest level since 2021.
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These concerns echoed recent comments from the Federal Reserve, which pointed to a softening job market while explaining its recent half-percentage point interest rate cut.
Approximately one-third of consumers also expressed expectations for lower interest rates within the next year, underscoring growing unease about the economic future. This drop in confidence could signal potential headwinds for consumer spending, a key driver of economic growth.
Economists will be watching closely as future reports unfold, particularly as global and domestic factors continue to shape the economic landscape.
DANA PETERSON SAID IN THE NEWS REPORTED BY CNBC:
“Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further. Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income,” said Dana Peterson, chief economist at The Conference Board.
Consumer confidence took a sharp hit this month due to growing concerns over the labor market, with fewer jobs being perceived as available.
The dip highlights economic uncertainty as consumers anticipate lower interest rates over the next year.
