US consumers gaining confidence as gas prices keep falling

Sep 26, 2022, 7:13 PM | Updated: Sep 27, 2022, 8:47 am
FILE - A shopper walks out of an Armani Exchange store, Jan. 21, 2022, in Miami Beach, Fla. U.S. co...

FILE - A shopper walks out of an Armani Exchange store, Jan. 21, 2022, in Miami Beach, Fla. U.S. consumers grew more confident for the second month in a row as gas prices continued to fall. The Conference Board said Tuesday, Sept. 27, 2022 that its consumer confidence index rose to 108 in September, from 103.6 in August. The back-to-back monthly increases follow three straight monthly declines as American households were hammered by rising prices, particularly at the gas pump. (AP Photo/Marta Lavandier)

(AP Photo/Marta Lavandier)

WASHINGTON (AP) — U.S. consumers grew more confident for the second month in a row as gas prices continued to fall.

The Conference Board said Tuesday that its consumer confidence index rose to 108 in September, from 103.6 in August. The back-to-back monthly increases follow three straight monthly declines as American households were hammered by rising prices, particularly at the gas pump.

The business research group’s present situation index — which measures consumers’ assessment of current business and labor market conditions — also rose again, to 149.6 in September from 145.3 in August.

The board’s expectations index — a measure of consumers’ six-month outlook for income, business and labor conditions — rose to 80.3 in September from 75.8 in August.

Analysts surveyed by data provider FactSet had expected consumer confidence to rise slightly as gas prices have fallen from highs this summer of more than $5 per gallon. AAA motor club says the average price for a gallon of gas in the U.S. fell to $3.75 on Tuesday.

Although by some measures, inflation appears to have slowed recently, the cost for most things are still significantly higher than they were a year ago.

Earlier this month, the government reported that consumer prices rose 8.3% from a year earlier and 0.1% from July. But the jump in “core” prices, which exclude volatile food and energy costs, remains worrisome. It outpaced expectations and stoked fear that the Federal Reserve will boost interest rates more aggressively and raise the risk of a recession.

Fueled by high rents, medical care and new cars, core prices leaped 6.3% for the year ending in August and 0.6% from July to August, the government reported earlier this month.

Since March, the Federal Reserve has implemented its fastest pace of rate increases in decades to try to curb four-decade high inflation, which has punished households with soaring costs for food, gas, rent and other necessities.

Last week, the Fed boosted its benchmark short-term rate, which affects many consumer and business loans, to a range of 3% to 3.25%, the highest level since early 2008. It was the central bank’s third straight three-quarter point increase and most economists and analysts expect more increases before the year ends.

Lynn Franco, the Conference Board’s senior director of economic indicators, said that consumers’ purchasing intentions for big-ticket items were mixed. More people said they expected to buy cars or big appliances in the near future, but fewer said they intend to buy a house anytime soon, as rising interest rates have added hundreds of dollars a month to mortgage payments.

Last week, mortgage buyer Freddie Mac said the average rate on a 30-year mortgage rose to 6.29%, the highest level since October of 2008 when the housing market crashed, triggering the Great Recession.

“Looking ahead, the improvement in confidence may bode well for consumer spending in the final months of 2022, but inflation and interest-rate hikes remain strong headwinds to growth in the short term,” Franco said.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Landslide leaves up to a dozen missing on Italian island

MILAN (AP) — Heavy rainfall triggered landslides early Saturday on the southern Italian island of Ischia that collapsed buildings and left as many as 12 people missing. Italy’s interior minister said no deaths had yet been confirmed, appearing to contradict an early announcement by another senior politician. “At the moment there are no confirmed deaths,” […]
1 day ago
Nancy Faeser, Federal Minister of the Interior and Home Affairs talks to members of the press in Em...
Associated Press

German government seeks to ease rules for naturalization

BERLIN (AP) — Germany’s socially liberal government is moving ahead with plans to ease the rules for obtaining citizenship in the European Union’s most populous country, a drive that is being assailed by the conservative opposition. Chancellor OIaf Scholz said in a video message Saturday that Germany has long since become “the country of hope” […]
1 day ago
In this photo provided by the Ukrainian Presidential Press Office, Ukrainian President Volodymyr Ze...
Associated Press

Ukraine works to restore water, power after Russian strikes

KYIV, Ukraine (AP) — Ukrainian authorities endeavored Saturday to restore electricity and water services after recent pummeling by Russian military strikes that vastly damaged infrastructure, with President Volodymyr Zelenskyy saying millions have seen their power restored since blackouts swept the war-battered country days earlier. Skirmishes continued in the east and residents from the southern city […]
1 day ago
FILE - Palestinian soccer fans wave Qatari and Palestinian flags as they watch a live broadcast of ...
Associated Press

Flashes of Arab unity at World Cup after years of discontent

DOHA, Qatar (AP) — For a brief moment after Saudi Arabia’s Salem Aldawsari fired a ball from just inside the penalty box into the back of the net to seal a World Cup win against Argentina, Arabs across the divided Middle East found something to celebrate. Such Arab unity is hard to come by and […]
1 day ago
FILE - MGM Grand Macau casino resort is closed in Macao on July 11, 2022. Macao has tentatively ren...
Associated Press

Macao awards casino licenses to MGM, Sands, Wynn, 3 others

BEIJING (AP) — Macao has tentatively renewed the casino licenses of MGM Resorts, Las Vegas Sands, Wynn Resorts and three Chinese rivals after they promised to help diversify its economy by investing in non-gambling attractions, the government said Saturday. The announcement is positive news for owners who have invested billions of dollars to build the […]
1 day ago
FILE - Local authorities inaugurate the Christmas lighting in the streets of Vigo, Spain, Nov. 19, ...
Associated Press

Sober or bright? Europe faces holidays during energy crunch

VERONA, Italy (AP) — Early season merrymakers sipping mulled wine and shopping for holiday decorations packed the Verona Christmas market for its inaugural weekend. But beyond the wooden market stalls, the Italian city still has not decked out its granite-clad pedestrian streets with twinkling holiday lights as officials debate how bright to make the season […]
1 day ago

Sponsored Articles

SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
US consumers gaining confidence as gas prices keep falling