US consumer confidence falls to lowest level since 2014 ahead of midterms

US consumer confidence has fallen to its lowest level since 2014, just over a month before the congressional midterm elections, The Conference Board said in its monthly report released on Tuesday.

Consumers cited higher costs for goods and services as the primary reason for the decline, according to the report. “The Consumer Confidence Index deteriorated notably in September, following two prior months of softening,” said Dana M. Peterson, chief economist at The Conference Board.

Higher prices at the pump were a key driver. The average US petrol price stood at $4.45 a gallon on Tuesday, up 37 cents from $4.08 a month earlier, according to AAA. “Oil and gas prices in particular rose to new heights, reflecting September’s surge in fuel costs,” Peterson added.

The report lands a day before the personal consumption expenditures (PCE) inflation report — up 3.7 percent in June from a year earlier — which the Federal Reserve uses to gauge inflation. The Fed raised interest rates for the first time in three years earlier this month and meets again on October 27–28.

Confidence fell among all political affiliations, and this is the second-to-last major confidence reading before the midterms, which will decide the balance of power in Washington. A recent Marist poll found 42 percent of Americans think Democrats would handle the economy better, against 34 percent for Republicans. US markets ended the day slightly lower: the Nasdaq fell 0.08 percent, the Dow 0.2 percent and the S&P 500 0.1 percent.