Consumer confidence in the United States weakened in September as concerns over a potential federal government shutdown weighed on public sentiment, according to new data released Tuesday by the Conference Board.

The headline consumer confidence index slipped to 94.2, down 3.6 points from August’s level and below analysts’ expectations of 96.0. This marks the lowest reading since April and reflects growing anxiety as nonessential government services face an imminent halt at midnight if lawmakers fail to reach a budget agreement.

The decline was also visible in the “present situation” index, which dropped to its lowest level in a year, signaling that Americans are increasingly uneasy about current business and employment conditions.

“Consumers’ perception of the business environment has turned notably less optimistic, and confidence in job availability has weakened for the ninth consecutive month, hitting a new multi-year low,” said Stephanie Guichard, senior economist for global indicators at the Conference Board.

Despite this downbeat sentiment, the labor market showed a slight improvement in August. The Bureau of Labor Statistics (BLS) reported that job openings rose to 7.23 million, an increase of 19,000 from July. However, the figure remains down by 422,000 positions, or 5.5%, compared to the same month last year.

The BLS Job Openings and Labor Turnover Survey (JOLTS), closely monitored by the Federal Reserve, revealed a slower pace of both hiring and separations. Notably, the number of workers voluntarily quitting their jobs—a key indicator of confidence in finding new employment—fell by 75,000.

Stability in the labor market remains a critical factor for the Federal Reserve as it evaluates future monetary policy decisions. Many investors now expect the Fed to cut interest rates by 0.5 percentage points before year’s end, likely spread across the October and December meetings.

Boston Fed President Susan Collins noted that while the baseline forecast does not predict major deterioration in the job market, risks are emerging. “There is an increased possibility that labor demand could fall well short of supply, which may cause an undesirable rise in unemployment,” she said Tuesday.

If Congress resolves the current budget standoff before Friday, the BLS is expected to report a modest rebound in job creation—projecting 51,000 new positions in September, compared with just 22,000 in August.

The Conference Board’s latest survey also pointed to a widening gap in how Americans view the labor market. The share of respondents saying jobs are “plentiful” dropped to 26.9%, down more than three percentage points from August, while the percentage describing jobs as “hard to get” held steady at 19.1%.

Additionally, consumers expressed growing concerns about their personal finances. Sentiment regarding current financial conditions saw its sharpest monthly decline since the question was introduced in July 2022, signaling that Americans are feeling more pressure from economic uncertainty and inflation.

Overall, the September data underscores how fragile public confidence remains amid slowing job growth, policy gridlock, and persistent cost-of-living challenges. As the government faces the risk of a shutdown, the coming weeks will likely determine whether this dip in confidence proves temporary—or a sign of deeper economic unease.