US consumer confidence near 12-1/2-year low amid labor market fears

Consumer confidence index falls 6.7 points to 81.9 in September, lowest level since 2014 Deterioration in confidence is across all political affiliations Job openings drop 256,000 to 7.079 million in August Single-family house prices increase 2.6% year-on-year in July By Lucia Mutikani WASHINGTON, Sept 29 (Reuters) — US consumer confidence plunged to a near 12-1/2-year low in September, with households expecting a deterioration in business and labor market conditions over the next six months amid the Middle East conflict and rising interest rates. The Conference Board survey on Tuesday mirrored other polls showing growing disenchantment over the economy heading into the November 3 midterm elections, which will determine control of Congress. The US-Israeli war has raised energy prices, stoking inflation and prompting the Federal Reserve to raise interest rates this month for the first time in three years. The rising cost of living has manifested itself in higher prices at the pump and supermarket as well as mortgage rates. Diesel prices are at a record high. Economists say the war has created an uncertain business environment and hindered employers' ability to hire more workers. "The economy is stagnant for the typical American household, which has been caused by the erratic public policy environment that makes it tough for businesses and households to plan for the future," said Kyle Moore, chief economist at The Century Foundation. The Conference Board said its consumer confidence index plummeted 6.7 points this month to 81.9, the lowest level since April 2014. Economists polled had forecast the index at 89.2. The deterioration in confidence was across political party affiliation, age and income groups. The findings are similar to last week's University of Michigan's Surveys of Consumers report. Dana Peterson, the Conference Board's chief economist, noted that consumers' write-in responses on the economy were mostly pessimistic, adding that "references to prices, the high cost of goods and services, and oil and gas prices in particular, rose to new heights." Consumers had a dim view of current and future expectations, centered on business and labor market conditions. The share of consumers saying jobs were "plentiful" dropped to 23.6%, the lowest level since February 2021, from 24.5% in August. The proportion who viewed jobs as "hard to get" climbed to 21.9%, the highest reading since January 2021, from 20.3% in August. The survey's so-called labor market differential narrowed to 1.7% from 4.2% in August. This measure closely correlates to the unemployment rate in the Labor Department's employment report. It raises the risk of the jobless rate rising in the months ahead, though the magnitude could be limited by a declining labor force amid an immigration crackdown and retirements. Consumers' downbeat assessment of the labor market was despite job growth accelerating in August after hitting a speed bump through much of summer. Emplo