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

Rising goods and fuel costs are cited as key factors in the sharp drop in consumer confidence.United States consumer confidence has fallen to its lowest level since 2014, just over one month before the congressional midterm elections.Consumers pointed to higher costs for goods and services as the primary reason for the decline, according to The Conference Board, which released its monthly report on Tuesday.Recommended Stories list of 4 itemslist 1 of 4US Fed raises interest rates for first time in three yearslist 2 of 4What to know about US Federal Reserve’s first interest rate hike in 3 yearslist 3 of 4China faces oil challenge as prices soar and supply options narrowlist 4 of 4Trump says he is rolling back Biden-era US fuel economy rules for carsend of list“The consumer confidence Index deteriorated notably in September, following two prior months of softening,” Dana M Peterson, chief economist at The Conference Board, said in a release announcing the report.Consumers pointed to higher prices at the pump as one of the driving factors. The average price for a gallon (3.78 litres) of petrol has jumped 37 cents over the past month, according to the American Automobile Association (AAA), which tracks daily petrol prices. The average price stood at $4.45 on Tuesday, compared with $4.08 a month ago.“Oil and gas prices in particular rose to new heights, reflecting September’s surge in fuel costs. Comments about war/conflict eased this month but remained elevated,” Peterson said.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, which was up 3.7 percent in June from a year earlier.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 set to make another decision on interest rates at its October 27-28 meeting, putting pressure on Republicans as consumer sentiment tumbles across political affiliations.