US consumer confidence sinks to lowest level since 2014

US consumer confidence plummeted in September to its lowest level since 2014, according to the Conference Board's key benchmark released on Tuesday, driven by soaring living costs and economic uncertainty stemming from the ongoing conflict in Iran. The index slipped by 6.7 points to 81.9 in the month, marking its most dismal level since April 2014.

The high cost of living has emerged as a significant concern as the US gears up for crucial midterm elections in November, with Democrats aiming to seize control of Congress from Donald Trump's Republican administration.

Dana Peterson, chief economist at the Conference Board, noted that consumers' written responses about economic factors were largely gloomy in September. The most pronounced concerns revolved around escalating prices, soaring costs of goods and services, and particularly, the surge in oil and gas prices. The escalating fuel costs, triggered by the war against Iran, have seen global oil prices surge since February, when the United States, along with its ally Israel, initiated military action against Iran and cut off a vital energy trading route in the Gulf.

The average price of regular gasoline in the United States has risen almost 50% since the onset of the conflict, per data from the AAA motor club. "Comments about war/conflict eased this month but remained elevated," Peterson added. "Consumers also frequently cited politics, trade, and employment in their written responses, though to a lesser degree."

Heather Long, chief economist at Navy Federal Credit Union, expressed concern over the new data. "American consumers are worried about this economy. That's alarming just as the most important shopping season of the year kicks off," she said, referring to the pre-Christmas period that the US retail sector heavily relies on.