U.S. Consumers Spooked by Tightening Jobs Market

By Joshua Kirby

American consumers felt much less cheerful this month as concerns over jobs worried spenders.

A consumer-confidence index set out Tuesday by research group The Conference Board dropped to 98.7 in September from an upwardly revised 105.6 in August, taking it below the historical benchmark of 100. Economists polled by The Wall Street Journal had expected a reading of 104.0.

That marks the steepest fall in more than three years, with all components of the index dropping. Fears over a cooling jobs market drove the darker mood among U.S. consumers, said Dana M. Peterson, the research group's chief economist.

"The deterioration across the index's main components likely reflected consumers concerns about the labor market and reactions to fewer hours, slower payroll increases, fewer job openings, even if the labor market remains quite healthy, with low unemployment, few layoffs and elevated wages," Peterson said.

Inflation concerns haven't entirely gone away either, despite recent months' advances in taming price rises. Expectations for inflation increased compared with the month before, and consumers didn't set out much greater appetite to make big-ticket purchases.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

September 24, 2024 10:36 ET (14:36 GMT)

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