Americans Are Grumpy About the Economy Again: Confidence Sinks as Prices Bite and Jobs Cool

US consumer confidence slipped for a second straight month in September, as more Americans fretted about stubborn prices and a softer job market. The Conference Board’s headline index fell 3.6 points to 94.2 from 97.8 in August — its weakest since April and below forecasts for 96.0.

Under the hood, the mood darkened on both today and tomorrow. The “present situation” gauge dropped seven points to 125.4, its lowest in a year, while the expectations index slid to 73.4 — still below 80, a zone that often flashes recession risk.

“Consumers’ assessment of business conditions was much less positive… and their appraisal of job availability fell for the ninth straight month,” said the Conference Board’s Stephanie Guichard.

What’s spooking people most? Prices reclaimed the top spot in write-in responses. Mentions of tariffs eased this month but remain elevated. Government data earlier showed headline inflation at 2.9% year over year in August (up from 2.7%), with core inflation at 3.1%.

The labor picture isn’t helping. Unemployment stands at 4.3%, the highest since October 2021. August payrolls grew by just 22,000 after July’s 79,000, and revisions shaved another 258,000 off May–June. Job openings in August ticked up slightly to 7.23 million but remain 422,000 below a year ago; quits fell again, a sign workers feel less confident about jumping ship. Fed watchers still expect rate cuts by year-end, but officials warn a sharper labor slide is a risk.

Policy uncertainty looms over hiring decisions. Economists point to the lingering drag from 2022–23 rate hikes and the chilling effect of President Donald Trump’s sweeping, shifting tariffs, immigration crackdown, and federal workforce purges. Many firms are stuck in a “no hire, no fire” crouch until they can tally the tariff fallout. A looming government shutdown could even delay Friday’s jobs report, where economists look for about 50,000 new payrolls.

Household plans reflect the jitters: intentions to buy cars fell, while home-purchase plans edged up to a four-month high. Big-ticket buying intentions were mixed across categories. And the share of consumers expecting a recession over the next year rose to the highest since May.

Bottom line: Confidence is cracking where it counts — prices and paychecks. Until inflation cools decisively and the job market stops leaking momentum, Americans are likely to keep their hands in their pockets, and their eyes on the exit.

AP, CNBC, Bloomberg, Forbes, and Reuters contributed to this report.