Americans’ confidence in economy hits its lowest since 2014

By the Editorial Team · Thursday, October 1, 2026

Consumer confidence in the U.S. economy dropped to its lowest point since 2014 in September, driven by persistent inflation, stagnant wage growth, and concerns over rising prices amid Middle East tensions. This decline underscores growing economic uncertainty for households just weeks before the midterm elections, with the Federal Reserve signaling potential further interest rate hikes to combat inflation.

Consumer confidence in the United States economy fell to its lowest level in over a decade in September, as persistent inflation and stagnant wages weighed heavily on household sentiment amid ongoing geopolitical tensions in the Middle East. The Conference Board reported that its Consumer Confidence Index dropped 6.7 points to 81.9, marking the lowest reading since April 2014 and falling below levels seen earlier in the COVID-19 pandemic.

The decline reflected consumers’ increasingly negative views of both current economic conditions and their short-term prospects. The present situation index fell 7.9 points to 109.3, while the expectations gauge declined 5.9 points to 63.6. Written responses gathered from September 1 to 23 frequently cited high prices for gasoline, goods, and services as key concerns.

Dana Peterson, chief economist at the Conference Board, noted that September’s deterioration followed two months of weakening confidence and marked the first time since September 2024 that consumers’ perceptions of business conditions turned negative. The latest readings suggest that inflation and economic uncertainty remain significant challenges for American households less than six weeks ahead of the midterm elections.

The U.S. Labor Department reported that consumer inflation remained elevated last month, with the Consumer Price Index (CPI) increasing 3.4% over the past year, consistent with July’s annual rate. On a monthly basis, the CPI rose 0.4%, quadrupling the previous month’s 0.1% increase. Gasoline prices have contributed significantly to cost pressures, with the average price for a gallon of regular gas hovering around $4.46. In addition, costs for appliances, auto repairs, and wireless phone services also jumped in August.

Inflationary pressures have been exacerbated by the ongoing conflict in the Middle East, which began in late February. The Federal Reserve’s preferred inflation measure, the personal consumption expenditures price index, rose 3.7% year-over-year in June, down from 4.1% in May but still above the pre-conflict rate of 2.8%. This compares to 2.5% inflation when former President Trump took office in January 2025.

In response to persistent inflation, the Federal Reserve increased its benchmark interest rate by a quarter point two weeks ago—the first hike since 2023—bringing the key rate to about 3.9%. The central bank indicated that another increase could follow before the end of the year, a move that could raise borrowing costs for mortgages, auto loans, and credit cards.

On the labor front, the job market showed some resilience in August with employers adding 162,000 jobs, reversing a summer trend of slow hiring. The unemployment rate held steady at 4.1%, though this figure may partly reflect workers ceasing their job searches in recent months. Despite expectations among many consumers for rising household incomes, wage growth has lagged; average hourly earnings increased by 3.1% over the past year, the smallest annual gain since May 2021.

With inflation continuing to outpace wage growth, many Americans face mounting financial pressures, contributing to a notable decline in economic confidence as the election season approaches.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.