US consumer confidence reaches 12-year low ahead of midterms
The Conference Board says confidence fell in September as consumers cited higher costs for goods and services, including fuel.
US consumer confidence fell in September to its lowest level since 2014, according to The Conference Board, as consumers pointed to rising costs for goods and services. The reading came just over a month before congressional midterm elections.
The board said confidence had deteriorated notably after softening for the previous two months. Its chief economist, Dana M Peterson, said consumers cited higher prices at the pump among the factors weighing on sentiment.
AAA data cited in the report put the average US petrol price at $4.45 a gallon on Tuesday, 37 cents above a month earlier. The board said confidence fell across political affiliations.
The report precedes a personal consumption expenditures inflation reading and the Federal Reserve’s next rate decision, scheduled for 27–28 October. The Fed raised interest rates earlier in September, according to the source report.
A recent Marist poll cited by Al Jazeera found 42 per cent of respondents thought Democrats would handle the economy better, compared with 34 per cent for Republicans. The November midterms will determine the balance of power in Congress.
