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

By Al Jazeera Staff. Published On 29 Sep 202629 Sep 2026.

Key points

• United States consumer confidence has fallen to its lowest level since 2014, just over one month before the congressional midterm elections.
• It is due to create another decision on interest rates at its October 27-28 gathering, putting pressure on Republicans as consumer sentiment tumbles throughout political affiliations.
• Consumers pointed to higher costs for goods and services as the primary reason for the decline, according to The Conference Board.
• Oil and gas rates in particular rose to new heights, reflecting September's surge in fuel costs.
• Consumers pointed to higher rates at the pump as one of the driving factors.

Consumers pointed to higher costs for goods and services as the primary reason for the decline, according to The Conference Board. It published its monthly report on Tuesday.

"The Consumer Confidence Index deteriorated notably in September, following two prior months of softening, " Dana M Peterson, chief economist at The Conference Board, remarked in a release announcing the report.

Consumers pointed to higher rates at the pump as one of the driving factors. The average cost for a gallon (3.78 litres) of petrol has jumped 37 cents over the past month, according to the American Automobile Association (AAA). It tracks daily petrol costs. The average cost stood at $4.45 on Tuesday, compared with $4.08 a month ago.

"Oil and gas rates in particular rose to new heights, reflecting September's surge in fuel costs. Comments regarding war/conflict eased this month but remained elevated, " Peterson stated.

Meanwhile, the consumer confidence report comes a day ahead of a key inflation report that the Federal Reserve uses to gauge the state of inflation, the personal consumption expenditures (PCE) index. It was up 3.7 percent in June from a year earlier.

Notably, the US central bank raised interest rates for the first time in three years earlier this month, driving up costs of credit cards and car and bank loans. It is due to create another decision on interest rates at its October 27-28 gathering, putting pressure on Republicans as consumer sentiment tumbles throughout political affiliations.

Consumer confidence fell among all political affiliations, as the report notes, the second-to-last major consumer confidence reading before the midterm elections. It will determine the balance of power in Washington, DC.

US consumers think the Democratic Party would handle the economy better than their Republican counterparts, with 42 percent saying Democrats would do a better job compared with 34 percent for Republicans, according to a recent Marist poll.

US markets are only slightly lower as the trading day comes to a close. The tech-heavy Nasdaq closed down 0.08 percent, the Dow Jones Industrial Average declined 0.2 percent and the S&P 500 was down 0.1 percent.

Taken together, the developments around US consumer confidence hits its lowest level since 2014 ahead of midterms point to a situation that is still moving, and the coming days should bring more clarity.