The confidence of American consumers falls to a four-month low: Concerns about inflation and economic recession intensify among the public.

According to a September 26th report by Reuters, American consumer confidence dropped to a four-month low in September due to increasing concerns about inflation and an economic recession.

The World Business Federation released a report on September 26th, indicating that the Consumer Confidence Index for the United States in September fell from August’s upwardly revised 108.7 to 103, which was below the economist’s estimated median of 105.5. The Present Situation Index saw a slight increase to 147.1, while the Expectations Index, reflecting consumers’ outlook for the next six months, dropped to 73.7, the lowest since May.

The report reflects consumers’ concerns about rising interest rates and the political environment. Due to political maneuvering, the United States may face a disruptive government shutdown on September 30th. Consumer confidence declined across all age groups, with those earning $50,000 or more per year showing the most significant drop. Economist Rupkey noted that overall prices in the U.S. remain higher than pre-COVID-19 levels, which has affected consumer confidence.