U.S. consumer confidence fell in September as Americans reported increased concerns about business conditions, employment prospects and rising prices, according to preliminary data from The Conference Board.
The Consumer Confidence Index fell 6.7 points to 81.9 in September from 88.6 in August, extending a recent decline in household sentiment.
The Present Situation Index, which measures consumers’ assessment of current business and labor market conditions, dropped 7.9 points to 109.3.
The Expectations Index, based on consumers’ six-month outlook for income, business and employment conditions, fell 5.9 points to 63.6, marking its third consecutive monthly decline.
The September survey was conducted from Sept. 1 through Sept. 23, a period that included an increase in the federal funds rate and continued geopolitical tensions.
Consumers See Weaker Business and Labor Conditions
Consumers became more pessimistic about current economic conditions during September.
The share describing business conditions as “good” declined to 18.5% from 18.8%, while those describing conditions as “bad” increased to 20.4% from 17.3%.
That pushed the net assessment of current business conditions into negative territory for the first time since September 2024, according to The Conference Board.
Perceptions of the labor market also weakened. The share of consumers saying jobs were “plentiful” fell to 23.6% from 24.5%, while those saying jobs were “hard to get” increased to 21.9% from 20.3%.
The resulting labor-market differential narrowed to just 1.7 percentage points.
Inflation Expectations Rise as Fuel Costs Hit Households
Inflation concerns became more prominent during the month.
Average 12-month inflation expectations increased by 0.3 percentage points to 6.1%, while the median expectation rose to 5.1%.
Consumers increasingly mentioned prices, the high cost of goods and services, and particularly oil and gasoline prices when asked what was affecting the economy, according to the survey.
Expectations for interest rates also shifted significantly. The share of respondents anticipating higher rates over the next 12 months jumped 5.2 percentage points to 68.4%.
Consumers continued to expect stock prices to rise over the coming year, although optimism weakened compared with August.
Expectations for Jobs and Business Conditions Deteriorate
The six-month outlook weakened across all three components of the Expectations Index.
Only 15.9% of consumers expected business conditions to improve, down from 17% in August, while 25.4% expected conditions to worsen.
Expectations for employment also deteriorated. The share anticipating more jobs declined to 14%, while 28.4% expected fewer jobs to become available.
Income expectations remained positive but weakened. About 17.9% expected their incomes to increase, compared with 15.4% who anticipated a decline.
The Conference Board said consumers continued to expect business conditions and the labor market to weaken over the next six months.
Household Finances Come Under Pressure
Consumers also became more negative about their personal finances.
Net assessments of households’ current financial situations turned negative in September, as the proportion describing their finances as “bad” exceeded those describing them as “good” for only the second time since The Conference Board introduced the question four years ago.
The share of consumers who considered a U.S. recession over the next 12 months “somewhat likely” also increased, while the proportion viewing a recession as unlikely declined.
Spending intentions showed signs of caution. Plans to purchase automobiles and homes edged lower on a six-month moving-average basis, while expected spending on services declined again.
Consumers nevertheless continued to prioritize spending on restaurants, takeout, streaming and telecommunications services, personal care, utilities and healthcare.
Vacation plans proved comparatively resilient, with 42.6% of consumers planning a vacation during the next six months, up slightly from August. The increase was concentrated in domestic travel, while intentions to travel internationally declined.
The September results point to growing caution among U.S. households as consumers face higher prices, weaker perceptions of the labor market and increasing uncertainty about future business conditions.
Source: The Conference Board, September 2026 Consumer Confidence Survey
