The Conference Board’s Consumer Confidence Index fell sharply in September 2025, dropping 3.6 points to 94.2, marking the lowest level since April and signaling growing economic anxiety among American consumers. The Consumer Confidence Index ended January 2025 at 104.1, down from 109.5 in December 2024.

The Present Situation Index, which measures consumers’ assessment of current business and labor market conditions, experienced its most significant drop in a year, falling 7.0 points to 125.4. Labor market perceptions deteriorated, with only 26.9% of consumers describing jobs as “plentiful,” down from 30.2% in August. This is the ninth consecutive month of decline in job availability assessments, reaching a new multiyear low. Meanwhile, 19.1% of consumers characterized jobs as “hard to get,” unchanged from the previous month.

Business conditions assessments also weakened, with 19.5% of consumers rating conditions as “good,” down from 21.8% in August, while 15.4% described conditions as “bad,” up from 14.6% the previous month.

The Expectations Index, which gauges consumers’ six-month outlook for income, business, and labor market conditions, declined 1.3 points to 73.4. This index has remained below the 80 threshold, which typically signals an impending recession, since February 2025. 

The share of consumers believing a recession is very likely over the next 12 months rose slightly in September to the highest level since May. Additionally, more consumers believe the economy has already entered a recession.

Perhaps most troubling, consumers’ assessments of their current financial situation recorded the largest one-month drop since data collection began in July 2022. 

Consumer expectations for future business conditions turned more pessimistic, with 18.7% expecting improvement compared to 20.2% in August, while 22.3% anticipated worsening conditions. Job market outlook also darkened, with only 16.1% expecting more jobs to become available, down from 17.9% in August, while 25.6% anticipated fewer employment opportunities.

Consumer concerns about inflation have intensified, with prices and inflation regaining their position as the top factor influencing economic views. Despite this renewed focus on price pressures, 12-month inflation expectations actually decreased slightly from 6.1% in August to 5.8% in September, though this remains notably above the 5.0% level recorded at the end of 2024.

The University of Michigan’s Consumer Sentiment Index, a smaller sample that relies on inflation and price concerns rather than labor market conditions, shows sentiment plunging to just 55.1 in September from September 2024’s reading of 70.1.