What happened
Consumer confidence in the United States has fallen to its lowest level since 2014, according to a recent survey by The Conference Board. The decline is attributed to growing concerns over high energy costs and inflation. The Consumer Confidence Index dropped by 6.7 points to 81.9 in September, following two previous months of decline.
The rise in energy prices, partly due to the Iran War, has led to increased inflation. Average oil prices at the pump have risen from $2.98 per gallon to over $4.40. This has contributed to an annual inflation rate of 3.4 percent in August, exceeding the Federal Reserve's target of 2 percent.
Another survey by the University of Michigan also found that consumers became more pessimistic about the economy in September. The chief economist at The Conference Board noted that consumers expect both business conditions and the labor market to weaken over the next six months.
