Consumer confidence in the United States fell sharply in September to its lowest level since 2014, as American households faced pressure from rising living costs and economic uncertainty linked to the war with Iran.
The US Consumer Confidence Index, released by the Conference Board, fell 6.7 points to 81.9 in September, its lowest level since April 2014.
“Consumer written responses about factors influencing the economy were mostly pessimistic in September,” said Dana Peterson, chief economist at the Conference Board.
The US Consumer Confidence Index measures how optimistic consumers are about economic conditions, based on a survey of their views on current conditions, financial expectations and spending plans.
Peterson added that “references to prices and rising costs for goods and services, particularly oil and gas prices, reached record levels,” reflecting the sharp increase in fuel costs during September.
Global oil prices surged after the war in the Middle East began with a US-Israeli attack on Iran on February 28. Tehran responded by closing the Strait of Hormuz, a vital route for energy supplies.
The average US gasoline price per gallon has risen by around 50% since the war began, according to data from the American Automobile Association (AAA).
Peterson said references to “war and conflicts” in the survey declined this month but remained elevated.
Consumers also frequently referred in their written responses to politics, trade and employment, although to a lesser extent, she added.
Source: AFP
