US consumer confidence fell in September to a five-month low, driven by concerns over the labor market.
Americans’ assessment of the economy’s health has wavered in recent months, and the unexpectedly steep drop in a closely watched survey reflected persistent anxiety over inflation; the perceptions of job availability dropped to a multi-year low.
Those worries could deepen if the government shuts down Wednesday and President Donald Trump follows through with this threat of mass firings. Despite the pessimism and cooling labor market, consumer spending has held up, putting the Federal Reserve in an awkward spot as it mulls further interest rate cuts. The shutdown could also delay the release of key economic data, further complicating policymakers’ decision making.