US consumer confidence drops sharply in September

Confidence levels among US consumers fell by the most in more than three years in September, with the outlook on business conditions turning negative.

The Conference Board's US Consumer Confidence Index dropped below the long-term average to 98.7 in September, down from an upwardly revised 105.6 in August.

Economists had expected a small decline to around 104.

The Present Situation Index fell dropped from 134.6 to 124.3, while the Expectations Index declined from 86.3 to 81.7.

“Consumer confidence dropped in September to near the bottom of the narrow range that has prevailed over the past two years," said Dana Peterson, chief economist at The Conference Board.

"Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further. Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income."