Consumer Confidence Hits Lowest Level Since April Amid Labor Market Concerns

12:44 PM EDT, 09/30/2025 (MT Newswires) -- US consumer confidence this month deteriorated to its lowest level since April amid concerns about the labor market, while 12-month inflation expectations declined, a report by the Conference Board showed Tuesday.

The consumer confidence index dropped 3.6 points sequentially to 94.2 in September. The consensus was for a 96 print in a Bloomberg survey.

"Consumers' assessment of business conditions was much less positive than in recent months, while their appraisal of current job availability fell for the ninth straight month to reach a new multiyear low," said Stephanie Guichard, senior economist of global indicators at the Conference Board. "Consumers were a bit more pessimistic about future job availability and future business conditions, but optimism about future income increased."

Consumers' average 12-month inflation outlook decreased to 5.8% this month from 6.1% in August, according to Guichard.

"Consumers' write-in responses showed that references to prices and inflation rose in September, regaining its top position as the main topic influencing consumers' views of the economy," Guichard said. "References to tariffs declined this month, but remained elevated and continued to be associated with concerns about higher prices."

On Monday, President Donald Trump said the US will set 10% tariffs on softwood timber and lumber and a 25% duty on certain upholstered wooden products and on kitchen cabinets and vanities, including their parts, effective Oct. 14. Separately, Trump said the US will impose a 100% tariff rate on foreign-made movies.

The present situation index fell by 7 points to 125.4 this month, marking its largest drop in a year, Guichard said Tuesday. The expectations gauge moved down by 1.3 points to 73.4, the data showed.

On Friday, a survey by the University of Michigan showed that US consumer sentiment dropped in September amid concerns regarding the prospects of higher inflation and labor market deterioration.

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