U.S.: Consumer confidence falls to 48.1, lowest in 4 months

WHAT HAPPENED

Consumer confidence in the U.S. fell from 51.7 to 48.1 points in September, its lowest level in four months. Additionally, the inflation expectation for the next year rose from 4.0% to 4.6%.

WHY IT MATTERS

Higher gasoline prices, the conflict in the Middle East, and tariffs are impacting sentiment. If people expect something that costs $100 to be around $105 in a year, it may reduce non-essential purchases, affecting stores, consumption, employment, and credit.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, this data indicates a potential cooling of consumption in the U.S., especially in stores, restaurants, and non-essential goods. It also shows that prices remain a concern for households.