Consumer confidence drops to 12-year low

Consumer confidence dips to lowest level since 2014

Consumer confidence dipped in September to its lowest level in a dozen years , the Conference Board reported Tuesday.

The board’s Consumer Confidence Index fell to 81.9 last month, down 6.7 points from August. That marked the lowest point for the metric since 2014, when consumer sentiment was rebounding from a low point of below 30 during the financial crisis.

The Expectations Index, a six-month outlook of future economic conditions, also declined by 3.2 points in September to nearly 60. That metric dipped below 60 last year, the first time it had done so since 2013.

Annual inflation has remained above the Federal Reserve’s 2 percent target for five-plus years , and has risen this year amid the Iran war .

The Middle Eastern conflict , which hit the seven-month mark on Monday, has resulted in energy price spikes due to the Islamic Republic’s restrictions on shipping in the Strait of Hormuz.

Dana Peterson , the Conference Board’s chief economist, noted that consumer appraisals of present business conditions in September were negative for the first time in two years.

“Perceptions of the current labor market also worsened, though remained within positive territory,” Peterson added in the board’s data release. “Over the next six months, consumers expected both business conditions and the labor market to weaken.

“Consumers still anticipated their household incomes to rise, but less so compared to previous months.”

Welcome to The Hill’s Business & Economy newsletter , I’m Max Rego — covering the intersection of Wall Street and Pennsylvania Avenue.

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