US consumer confidence hits its lowest level since 2014 ahead of midterms

What the report says

US consumer confidence has dropped to its lowest level since 2014, according to a monthly report from The Conference Board cited by Al Jazeera, with the decline coming a little more than a month before the US congressional midterm elections. The report said consumers were increasingly concerned about higher costs for goods and services, especially fuel prices, as a major reason for the weaker sentiment.

Al Jazeera reported that gasoline prices have risen sharply over the past month, with the AAA tracking an average increase of 37 cents per gallon. The article also noted that the consumer confidence reading fell across political affiliations, suggesting broader unease about the economy rather than a single partisan trend. The Conference Board’s chief economist, Dana M Peterson, said confidence weakened significantly in September after two earlier months of softer readings.

The report comes ahead of another closely watched inflation measure, the personal consumption expenditures index, which the Federal Reserve uses in policy decisions. Al Jazeera said the US central bank had recently raised interest rates for the first time in three years, adding pressure on borrowing costs for households and businesses. That economic backdrop is politically relevant because voter views on inflation and household expenses often shape midterm election outcomes.

For context, consumer confidence measures how optimistic people feel about their finances and the broader economy, and it is often watched as an indicator of future spending. Al Jazeera said the latest reading is one of the last major confidence surveys before voters head to the polls.