Consumer Confidence Drops

Consumer Confidence Drops Sharply in Finland and U.S. Amid Rising Inflation Fears

Consumer confidence weakened in September in Finland, where the indicator fell to -4.9 from -3.0 in August, below its long-term average. Consumers’ assessments of their personal finances and the country’s economic outlook deteriorated, and spending intentions softened while saving intentions improved. In the United States, the University of Michigan’s final sentiment index fell to 48.1, its lowest in four months, as views of current and future finances weakened; inflation expectations rose, and high prices and renewed trade tensions weighed on sentiment. Separately, a U.S. consumer confidence measure fell 6.7 points to 81.9, its lowest since April 2014 and below expectations, as households grew more pessimistic about current conditions and the outlook. Respondents cited high prices and rising fuel costs amid gasoline price surges linked to the Iran war, while inflation and interest-rate expectations increased; confidence fell especially sharply in California, and consumers reported more cautious plans for travel and other discretionary spending. Despite the decline, separate data indicated the U.S. labor market remained relatively solid.

Key Points

Topics