US consumer confidence fell again in September, extending a slump from August as Americans voiced concerns about rising food and energy prices, according to survey data published Tuesday.
“Consumers continued to be preoccupied with rising prices in general, and for groceries and gasoline in particular,” Conference Board Chief Economist Dana Peterson said in a statement.
She added that people “also expressed concerns about the political situation and higher interest rates.”
The decline in consumer confidence was notable among those with household incomes of $50,000 or more, according to the Conference Board.
An increase in oil prices pushed up energy costs in the United States over the summer, and inflation along with it, causing headaches for the Federal Reserve as it attempts to slow price increases through interest rate hikes.
The Fed has raised its benchmark lending rate 11 times since March 2022 in a bid to bring inflation back down to its long-term target of two percent.
While higher interest rates have succeeded in sharply slowing inflation since last year, the recent rise in energy costs fueled an uptick in price increases over the summer, keeping up the pressure on the Fed.
“Consumer confidence fell more than expected in September, to the lowest level since May, on weakness in the expectations component,” High Frequency Economics Chief US Economist Rubeela Farooqi wrote in a note to clients.
“While household perceptions about labor market conditions improved modestly in September, they have weakened in the last two months, which could be a headwind for consumers, spending and growth going forward,” she added.
