Topline<\/p>\n
Americans are expressing lowered opinions about the U.S. economy as worries persist about a declining job market and rising prices, according to survey results released Tuesday by the Conference Board think tank, though consumers are now citing the government shutdown as a \u201ckey concern.\u201d <\/p>\n
Recent surveys suggest Americans have grown increasingly concerned about inflation, rising prices and a cooled labor market.<\/p>\n
Getty ImagesKey Facts<\/p>\n
The Conference Board\u2019s confidence index\u2014a measurement of consumers\u2019 views on the U.S. economy\u2014fell<\/a> to 94.6 in October from 95.6 in August, down from a 100-point baseline set in 1986 and the lowest reading since April.<\/p>\n The reading comes just above Wall Street\u2019s projections of 94.2, according to FactSet.<\/p>\n A measurement of consumers\u2019 expectations for the economy over the next six months fell to 71.5 in October, the lowest level since June, despite a metric of present conditions increasing slightly from 127.5 to 129.3.<\/p>\n Metrics around the labor market remained low after ticking up for the first time since December 2024: About 18.4% of consumers said jobs were \u201chard to get,\u201d while 27.8% said jobs were \u201cplentiful,\u201d up from 18.2% and 26.9% in September, respectively.<\/p>\n Government Shutdown Emerges As Economic Concern<\/p>\n Stephanie Guichard, a senior economist at the Conference Board, said in a statement that consumers appeared to be \u201ca bit more pessimistic\u201d about future job availability and job conditions. Write-in comments from respondents remained \u201cmostly negative overall,\u201d but less so than in previous months, Guichard said, noting references to U.S. politics rose \u201cnotably,\u201d with the ongoing government shutdown mentioned \u201cmultiple times as a key concern.\u201d Rising prices and inflation, however, \u201ccontinued to be the main topic influencing consumers\u2019 views of the economy,\u201d Guichard said. A survey on consumer sentiment released last week from the University of Michigan found \u201clittle evidence\u201d the shutdown had deteriorated economic views.<\/p>\n What To Watch For<\/p>\n The Federal Reserve will conclude its policymaking meeting on Wednesday, and investors are trading in 96.7% odds the central bank will lower interest rates by another 25-basis points to between 3.75% and 4%, according to CME Group\u2019s FedWatch tool<\/a>. During its September meeting, policymakers voted in favor of reducing rates to between 4% and 4.25% while debating how many additional rate cuts were necessary through the end of the year, with some arguing for two more cuts by December.<\/p>\n Key Background<\/p>\n Economic optimism has fallen among Americans in recent months, as surveyed consumers have expressed concerns about President Donald Trump\u2019s tariffs, inflation and a declining labor market. The University of Michigan reported consumers are \u201cfrustrated by the persistence of high prices,\u201d with many indicating their personal finances had deteriorated as a result. The government shutdown, which reached a duration of 28 days as of Tuesday, has yet to be cited as a concern among Americans about the economy, however. Joanne Hsu, director of the University of Michigan\u2019s survey, has said multiple times there was no evidence the shutdown lowered economic views, suggesting consumers \u201cperceive few material changes\u201d in economic circumstances from September to October. <\/p>\n