US Consumer Confidence Drops, Job Market Weakens as Shutdown Looms

US consumer confidence fell to its lowest level since April, underscoring growing concerns about the labor market just as a potential government shutdown threatens to halt economic data releases.

The Conference Board’s consumer confidence index slipped to 94.2 in September, below economists’ expectations of 96.0, marking the ninth straight month of weaker sentiment about job availability. Stephanie Guichard, senior economist at the Conference Board, noted that consumers’ views on both business conditions and employment prospects have deteriorated sharply.

Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) showed that job openings edged up to 7.227 million in August, slightly above estimates, but hiring declined by 114,000 to 5.126 million. Layoffs also eased, falling by 62,000 to 1.725 million. The data points to a labor market that remains tight but is clearly cooling, with businesses more hesitant to expand headcount and fewer workers confident enough to quit.

The weakness in hiring, coupled with softening consumer sentiment, could give the Federal Reserve room to cut rates again at its October 29 meeting, after already lowering its benchmark by 25 basis points earlier this month. Economists expect around 50,000 new jobs in September, but those figures could be delayed if a government shutdown begins Tuesday at midnight.

On Wall Street, stocks opened slightly lower on the final day of the third quarter. The Dow Jones slipped 33 points, the S&P 500 lost 5 points, and the Nasdaq dropped nearly 11 points, as investors weighed both labor market data and the risk of a prolonged federal shutdown disrupting economic momentum.

With consumer confidence falling, hiring slowing, and a shutdown looming, the labor market is flashing signs of strain just as the Fed balances growth risks against stubborn inflation. Would you like me to also add a short market impact section—covering gold, dollar, and Treasuries reaction—to complete this update?