CB Consumer Confidence Report Shows Decline to 98.7, Igniting Concerns

Current Economic Climate and Consumer Confidence

On September 24, 2024, the Conference Board released its CB Consumer Confidence report for September, revealing a troubling drop from 105.6 in August to 98.7 in September. This figure fell short of analysts' expectations of 103.8, raising concerns about the overall economic health.

Key Insights on Consumer Confidence

• Steepest declines observed in consumers aged 35 to 54.
• All income groups reported reduced confidence, with those earning less than $50,000 experiencing the most significant decrease.

Sub-indices Affected

The Present Situation Index dropped from 134.6 in August to 124.3 in September, while the Expectations Index fell from 86.3 to 81.7. The Conference Board's analysis highlighted that this deterioration across index components mirrors consumers' declining sentiments regarding the labor market. Despite low unemployment rates and high wages, concerns about fewer job openings and slower payroll increases persist.

Market Reactions

The U.S. Dollar Index tested session lows following the release of the report, with current trading attempting to settle below 100.60. In contrast, Gold prices surged to new highs at $2640 as traders shifted focus towards the dollar's weakness, maintaining a bullish outlook amid increasing geopolitical tensions.

SP500 faced a pullback toward the 5720 level, as stock traders expressed worries regarding a potential economic slowdown, opting to take profits near all-time highs.

For comprehensive insights into today’s economic events, please refer to our economic calendar.