US Consumer Confidence Hits Lowest Since 2014 Amid Economic Worries

The US consumer confidence index fell to 81.9 points in September, down from 88.6 in August, marking its lowest point since April 2014, according to Conference Board data. The index assessing current conditions dropped 7.9 points to 109.3, while the expectations index decreased 5.9 points to 63.6, declining for the third consecutive month. This downturn coincides with rising American concerns over living costs, fuel prices, and interest rates, alongside a worsening outlook for business and labor market conditions in the coming months. Survey data also indicated increased caution regarding discretionary spending.

The decline in US consumer confidence has potential implications for Israel due to the extensive trade relationship between the two nations. In 2025, total trade in goods and services between the US and Israel reached approximately $54.2 billion, with US imports of Israeli goods totaling $20.7 billion, according to the US Trade Representative's office. The US market is particularly crucial for Israel's tech sector, which recorded exports of about $85 billion in 2025, representing 58% of Israel's total exports, as per the Israel Innovation Authority.

While the confidence figures alone do not guarantee a drop in Israeli exports, they signal a shift in American consumer sentiment. If pessimism translates into reduced spending, companies reliant on US demand could be affected, with potential ripple effects on global markets. Markets are also monitoring these developments in light of rising energy costs and US bond yields. Changes in interest rate expectations or the strength of the dollar could impact global markets, including Israel's, with the extent of the effect depending on the trajectory of the US economy in the upcoming months.