US consumer confidence sinks to lowest level since 2014
Shoppers walks through a produce section at a grocery store in Washington, D.C., Jul. 24. Reuters-Yonhap
WASHINGTON — U.S. consumer confidence plunged sharply in September to a level not seen since 2014, according to a key benchmark published on Tuesday, with U.S. households battered by a high cost of living and economic uncertainty from the Iran war.
The Conference Board's consumer confidence index fell by 6.7 points to 81.9 this month, its lowest level since April 2014.
The high cost of living in the United States is a major issue as the country heads into key midterm elections in November, where Democrats are seeking to wrest control of Congress from U.S. President Donald Trump's Republican Party.
"Consumers' write-in responses regarding factors affecting the economy were mostly pessimistic in September," said Dana Peterson, chief economist at the Conference Board.
"References to prices, the high cost of goods and services, and oil and gas prices in particular, rose to new heights, reflecting September's surge in fuel costs."
Global oil prices have skyrocketed since Trump and U.S. ally Israel launched the war against Iran in late February, with Tehran's retaliatory action targeting Washington's allies in the Gulf and virtually shutting a key energy trading route.
In the United States, the average price of a gallon of regular gasoline is up almost 50 percent since the start of the war, according to data from the AAA motor club.
"Comments about war/conflict eased this month but remained elevated," said Peterson. "Consumers also frequently cited politics, trade, and employment in their write-in responses, though to a lesser extent."
Heather Long, chief economist at Navy Federal Credit Union, said the new data was of concern.
"American consumers are worried about this economy. That's alarming just as the most important shopping season of the year kicks off," she said, referring to the pre-Christmas period that the U.S. retail sector relies on.