The Conference Board's consumer confidence index plunged to its lowest level in more than 12 years in September, reflecting growing pessimism among American households about current business conditions and the labor market.

The index fell 6.7 points to 81.9, down from a revised 88.6 in August, according to data released Tuesday. Economists had expected a reading near 89.2. The September figure marks the weakest since April 2014.

The present situation index declined 7.9 points to 109.3, while the expectations index for the next six months dropped 5.9 points to 63.6. Consumer appraisals of current business conditions turned negative for the first time since September 2024, said Dana Peterson, chief economist at the Conference Board. Perceptions of the current labor market also worsened, though they remained positive overall.

Survey responses highlighted concerns over elevated prices for gas, goods, and services amid five years of high inflation and the ongoing Iran conflict. The drop could signal risks to consumer spending, a key driver of the U.S. economy.

The timing adds pressure ahead of midterm elections scheduled for early November. Weaker confidence may influence voter sentiment regarding President Donald Trump and Republican candidates.

The report aligns with other recent surveys showing softening sentiment, including declines in University of Michigan data. Analysts will watch whether the trend persists into October.