Labor market concerns cause consumer confidence to drop to lowest level since 2021

From Nasdaq: 2024-09-24 12:44:56

U.S. consumer confidence dropped significantly in September, driven by concerns over the labor market. The Conference Board’s index fell to 98.7 from 105.6 in August, marking the largest decline since August 2021. 30.9% of consumers viewed jobs as “plentiful,” down from 32.7% in August. The Federal Reserve’s recent interest rate cut aims to maintain low unemployment, but may not alleviate consumer unease about job availability and wages.

Economists are closely monitoring labor market indicators to assess the impact on consumer confidence. Companies’ hiring and wage trends during the upcoming holiday season will be crucial in shaping consumer sentiment into the new year. Future Federal Reserve policy decisions may address rising concerns about job availability and wage stability. Investors are watching for further rate reductions or policy adjustments to maintain consumer confidence.



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