U.S. Consumer Confidence Falls to Lowest Level in More Than 12 Years

American consumer confidence fell sharply in September, reaching its lowest level in more than 12 years as households expressed growing concern about the economy, employment conditions and the cost of everyday goods.

The Conference Board's consumer confidence index dropped to 81.9 in September from 88.6 in August, according to data reported September 29. The decline represented a broad deterioration in household sentiment across several measures of current economic conditions and expectations.

The report comes as Americans continue to face elevated costs for necessities including fuel, groceries and housing. Higher interest rates and mortgage costs have also increased financial pressure on households considering major purchases.

Consumer confidence is closely watched because household spending represents a major part of the U.S. economy. When consumers become more cautious, businesses can see changes in demand for goods and services.

The September decline was also connected to concerns about the labor market. Job openings fell by 256,000 to approximately 7.079 million, according to the data cited by Reuters. The decline added to concerns among households about future employment conditions.

The labor-market picture remains mixed. Employment growth increased in August, but the reduction in available job openings suggests that some employers may be becoming more cautious about hiring.

For working Americans, changes in job availability can influence decisions about spending, saving and major purchases. Households that are uncertain about future employment may postpone discretionary expenses even when they remain employed.

Housing costs are another significant factor. Home prices increased 0.3% in July, while mortgage rates remained elevated. The combination of higher property prices and borrowing costs has made homeownership more difficult for many first-time buyers.

Energy prices have also affected household budgets. Higher fuel costs can increase transportation expenses directly while also raising costs throughout supply chains, potentially affecting the prices of other goods.

The decline in confidence therefore reflects several pressures occurring at the same time. Households are responding not to a single economic indicator but to the combined effect of prices, interest rates, employment expectations and housing affordability.

The consumer-confidence report also provides insight into the broader business environment. Companies rely on consumer demand when determining staffing levels, inventory, expansion plans and investment. A sustained decline in confidence can therefore influence corporate decisions.

The September reading was notable because the decline occurred across different demographic and income groups rather than being confined to a narrow portion of the population. The broad nature of the decline suggests that concerns about the economic environment are widespread.

At the same time, consumer confidence does not necessarily predict immediate changes in household spending. People can report greater economic concern while continuing to spend on essential goods and services.

Businesses therefore tend to consider consumer-confidence data alongside employment, retail sales, income and other indicators when evaluating economic conditions.

For men and families managing household budgets, the latest reading provides a snapshot of the financial environment at the end of the third quarter. Higher prices and borrowing costs can affect decisions ranging from housing and vehicles to travel, entertainment and other discretionary purchases.

The data also arrives as businesses enter the final quarter of the year, a period when many companies assess consumer demand and prepare budgets for the following year.

The September confidence decline does not by itself establish the future direction of the U.S. economy. It does, however, show that households are increasingly concerned about the conditions they expect to face.

For businesses and workers alike, the report highlights the importance of monitoring both employment conditions and the cost of living as the U.S. economy moves toward the final months of 2026.