World

US consumer confidence hits its lowest level since 2014 ahead of midterms

Al Jazeera · 2026-09-29

AI SUMMARY

• What happened: US consumer confidence has dropped to its lowest level since 2014, primarily due to rising costs for goods and services, just over a month before the congressional midterm elections. • Why it matters: This decline in consumer sentiment could significantly impact voter behavior and political dynamics, as economic conditions are closely tied to electoral outcomes. • What to watch next: The Federal Reserve's upcoming meeting on October 27-28 will be crucial for potential interest rate adjustments, which could further influence consumer confidence and economic conditions ahead of the midterms.

**US Consumer Confidence Plummets to Lowest Level Since 2014 Ahead of Midterm Elections**

*Published: September 29, 2026*

In a significant indicator of economic sentiment, consumer confidence in the United States has dropped to its lowest level since 2014, as reported by The Conference Board. This decline comes just over a month before the crucial congressional midterm elections, raising concerns about the potential impact on voter sentiment and political dynamics.

The Conference Board's monthly report, released on Tuesday, highlights that rising costs for goods and services are the primary drivers behind this downturn in consumer confidence. Dana M. Peterson, chief economist at The Conference Board, noted that the Consumer Confidence Index showed a notable deterioration in September, marking a continuation of a trend observed over the previous two months.

One of the key factors contributing to consumer anxiety is the escalating price of gasoline. According to the American Automobile Association (AAA), the average price for a gallon of petrol has surged by 37 cents in just one month, reaching $4.45, up from $4.08. This increase reflects broader trends of rising oil and gas prices, which have reached new highs amid ongoing global economic pressures.

Peterson commented on the situation, stating, "Oil and gas prices in particular rose to new heights, reflecting September’s surge in fuel costs." While commentary surrounding geopolitical conflicts has eased somewhat, concerns about inflation remain elevated among consumers.

This consumer confidence report arrives on the eve of a key inflation measure, the personal consumption expenditures (PCE) index, which the Federal Reserve uses to assess inflation trends. The PCE index reported a year-over-year increase of 3.7 percent in June, indicating persistent inflationary pressures.

In response to these economic challenges, the US central bank raised interest rates for the first time in three years earlier this month, which has resulted in higher borrowing costs for consumers. Credit card rates, car loans, and bank loans have all seen increases, adding to the financial strain on households. The Federal Reserve is scheduled to convene again on October 27-28 to discuss further interest rate adjustments, which could further influence consumer sentiment.

The decline in consumer confidence is not limited to a specific political affiliation; the report indicates that sentiment has worsened across the board. This is particularly significant as the midterm elections approach, which will play a critical role in determining the balance of power in Washington, D.C. A recent Marist poll suggests that a majority of US consumers believe the Democratic Party would manage the economy more effectively than the Republican Party, with 42 percent favoring Democrats compared to 34 percent for Republicans.

As the trading day concluded, US markets reflected the cautious economic outlook, with slight declines observed across major indices. The tech-heavy Nasdaq fell by 0.08 percent, the Dow Jones Industrial Average decreased by 0.2 percent, and the S&P 500 slipped by 0.1 percent.

With consumer confidence at such a low ebb, the economic landscape is poised for scrutiny as voters prepare to head to the polls. The interplay between economic conditions and political outcomes will be closely watched in the coming weeks as the midterm elections draw near.

Source: Al Jazeera
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