Consumer Confidence Plummeted in September to Almost a 2 Year Low

Consumer confidence fell more than expected to 99.8 (consensus 104.3) in September. This follows a revised improvement to 105.6 for August. Both current conditions and future expectations fell as more people viewed jobs as hard to get (22%). (Note - This survey was taken before the Fed rate cuts this month.)

Inflation expectations fell as participants expect interest rates to fall. An equal percentage - 29% - expect stock prices to rise and fall from here. This compares to 40% looking for higher prices in May versus 20% looking for lower prices.

Those under 35 saw a rise in confidence, while those over 35 were more pessimistic. All income levels saw a drop in confidence, with the largest drop coming in the highest income category.

New England saw the largest erosion in confidence, followed by the Northeast Central and Pacific regions. The Southeast central and Mid Atlantic saw the largest improvements in sentiment. The South Atlantic, which includes the DC area, experienced a modest weakening in consumer confidence- with expectations falling more than perceptions of current conditions.