American shoppers are feeling the squeeze, and they're saying so out loud. U.S. consumer confidence tumbled in September to its weakest level in over a decade, deepening worries about the economy as Treasury yields hover at multi-decade highs.

The Conference Board's Consumer Confidence Index fell 6.7 points to 81.9, down from 88.6 in August, the lowest reading since 2014. Economists had expected the gauge to rise to 89.2, so this was a miss in the wrong direction.

The Present Situation Index dropped 7.9 points to 109.3, while the Expectations Index slid 5.9 points to 63.6, its third straight decline and far below the 80 threshold that typically signals recession risk.

“Consumer appraisals of current business conditions became negative for the first time since September 2024,” said chief economist Dana Peterson.

Prices, especially fuel, dominated write-in responses, alongside the Fed's rate hike and geopolitical tensions. Average 12-month inflation expectations rose to 6.1%, and 68.4% of consumers expect higher interest rates.