US consumer confidence declines again as Americans fret over prices, job
market
[October 01, 2025] By
MATT OTT
WASHINGTON (AP) — U.S. consumer confidence declined again in September
as Americans’ pessimism over inflation and the weakening job market
continued to grow.
The Conference Board said Tuesday that its consumer confidence index
fell by 3.6 points to 94.2 in September, down from August’s 97.8. That’s
a bigger drop than analysts were expecting and the lowest reading since
April, when President Donald Trump rolled out his sweeping tariff
policy.
A measure of Americans’ short-term expectations for their income,
business conditions and the job market fell to 73.4, remaining well
below 80, the marker that can signal a recession ahead. Consumers’
assessments of their current economic situation dipped by 7 points to
125.4.
Write-in responses to the survey showed that references to prices and
inflation rose this month, regaining its top position as consumers’ main
concern about the economy. Mentions of tariffs declined this month but
remain elevated, the Conference Board said.
Government data released earlier this month showed that inflation rose
in August as the price of gas, groceries and airfares jumped.
Consumer prices increased 2.9% last month from a year earlier, the Labor
Department said, up from 2.7% the previous month and the biggest jump
since January. Excluding the volatile food and energy categories, core
prices rose 3.1%, the same as in July.
While unemployment and layoffs remain historically low, there has been
noticeable deterioration in the labor market this year and mounting
evidence that people are having difficulty finding jobs.
Earlier this month, the government reported that U.S. nonfarm employers
added a paltry 22,000 jobs in August, following July’s disappointing
79,000 job gains. Worse, revisions to the May and June figures shaved
258,000 jobs off previous estimates. The unemployment rate stands at
4.3%, the highest since October 2021.
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Shoppers walk by a clothing store, Thursday, Sept. 25, 2025, in
Miami Beach, Fla. (AP Photo/Marta Lavandier)
 Also Tuesday, the Labor Department
reported that U.S. job openings in August remained at 7.2 million,
about the same as the previous month.
In addition to the lingering effects of 11 interest rate hikes by
the Federal Reserve’s inflation fighters in 2022 and 2023,
economists say the recent hiring slump may also be a result of
Trump’s policies, including his sweeping and ever-changing tariffs
on imports, a crackdown on illegal immigration and purges of the
federal workforce.
Many companies are locked in a “no hire, no fire” position, fearful
of expanding payrolls until the effects of Trump’s tariffs are more
clear.
More jobs data comes Friday when the government releases its
September labor market data, with analysts forecasting 50,000 job
gains. However, that report could be postponed if a budget impasse
in Congress leads to a government shutdown Wednesday.
The share of consumers expecting a recession over the next year rose
modestly in September to the highest level since May.
Survey respondents who said they intended to buy a new or used car
in the near future fell, while the share of those saying they
planned to purchase a home rose to a four-month high.
Those saying they planned to buy big-ticket items like appliances
were little changed from August with big variations across
categories.
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