U.S. Consumer Confidence Plummets Amid Labor Market Concerns

U.S. consumer confidence witnessed its steepest decline in three years in September, driven by apprehensions about the labor market. Despite the drop, more households showed interest in purchasing homes over the next six months. The Federal Reserve's recent interest rate cut aims to sustain low unemployment. The economic outlook remains clouded ahead of the presidential election.

U.S. consumer confidence experienced its sharpest decline in three years this September, as mounting worries over the labor market took a toll. According to the Conference Board survey released Tuesday, more households expressed intentions to buy homes in the coming six months despite the downturn.

The recent Federal Reserve decision to slash interest rates by 50 basis points to the 4.75%-5.00% range, the first cut since 2020, reflects efforts to maintain low unemployment, currently at 4.2%. Fed Chair Jerome Powell emphasized policymakers' commitment to economic stability.

Economists like Ben Ayers of Nationwide highlight the pressure on households amid a weakening labor market, suggesting further aggressive Fed easing could bolster consumer optimism. The survey revealed a mixed outlook on future consumer spending, affected by political concerns and economic uncertainties.

(With inputs from agencies.)