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U.S. Consumer Confidence Falls to 12-Year Low on Inflation, Gas Prices
The Conference Board's Consumer Confidence Index fell to 81.9 in September 2026, the lowest since April 2014, driven by surging energy costs, persistent inflation, and worsening labor market expectations. Both current conditions and future outlook indices declined significantly, with consumers citing elevated gas and service prices as primary concerns.
Quick Facts
- Consumer Confidence Index fell 6.7 points
- Present Situation Index retreated 7.9 points
- Expectations Index dropped 5.9 points
- Consumers' views of current business conditions turned negative for first time since Sept. 2024
- Diesel prices hit record highs

U.S. consumer confidence collapsed in September, reaching its lowest point since April 2014, as elevated prices and a weakening labor market outlook intensified economic pessimism across American households.
The Conference Board's Consumer Confidence Index fell 6.7 points to 81.9 in September, down from 88.6 in August, according to results released Tuesday. Both components of the index declined sharply: the Present Situation Index, which measures current business and labor conditions, dropped 7.9 points to 109.3, while the Expectations Index, tracking six-month outlook for income and employment, fell 5.9 points to 63.6 for its third consecutive monthly decline.
Consumers cited surging energy costs and persistent price pressures as primary concerns. References to high gas and service prices reached new highs in September, with U.S. diesel prices averaging approximately $6.53 per gallon on September 22—nearly double the $3.68 price from a year earlier. Regular gasoline prices averaged $4.46 per gallon at the time of the survey. Dana Peterson, chief economist at the Conference Board, noted that consumers' views of current business conditions turned negative for the first time since September 2024, while perceptions of the labor market also worsened.
The deterioration reflects broader economic headwinds facing American households. Annual inflation measured 3.4% in August, with the personal consumption expenditures price index up 3.7% from a year earlier—elevated compared to pre-conflict levels. Meanwhile, average hourly wage growth slowed to 3.1% year-over-year in August, the weakest rate since May 2021, leaving real purchasing power strained. Respondents broadly expected household incomes to rise but at lower rates than in previous months.
The survey, conducted September 1-23, revealed widespread pessimism. Write-in responses were predominantly negative, with frequent references to high costs of goods and services. Consumers expected both business conditions and the labor market to weaken further over the next six months. The decline marks a sharp acceleration in household pessimism after two consecutive months of sentiment softening and falls below the lowest confidence level recorded during the pandemic.
Why This Matters
Household spending sentiment has declined to levels last seen during the 2014 energy market downturn, with measurable impacts on consumer purchasing expectations and business investment signals. Real wage growth (3.1% year-over-year) has fallen below inflation metrics (3.7% PCE), reducing disposable income purchasing power and likely to constrain retail spending, service demand, and durable goods purchases over the next six months. Labor market expectations have weakened for three consecutive months, which historically precedes slower hiring and unemployment increases.
Timeline & Sources
Feb 28, 2025
WireIran war begins; inflation begins rising from baseline
Sep 22, 2026
WireU.S. diesel prices hit record average of $6.53 per gallon
Sep 29, 2026
WireConference Board releases September Consumer Confidence Index at 81.9
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