U.S. consumers turned pessimistic on the economic outlook in September, according to data from The Conference Board, bringing a four-month win streak to an abrupt halt.
The organization said Tuesday its gauge of consumer sentiment tumbled to 86 in September from 93.4 in the previous month, with expectations also falling sharply, to 83.7 from 93.1. Economists in a consensus survey expected the index to edge up to 92.5 in September, against the prior month’s reading of 92.4.
“A less positive assessment of the current job market, most likely due to the recent softening in growth, was the sole reason for the decline in consumers’ assessment of present-day conditions,” Lynn Franco, The Conference Board’s director of economic indicators, said in a statement.
“Looking ahead, consumers were less confident about the short-term outlook for the economy and labor market, and somewhat mixed regarding their future earnings potential. All told, consumers expect economic growth to ease in the months ahead.”
In early trading, Wall Street benchmarks dipped modestly.