Consumer confidence fell again in September as Americans expressed greater concern that the economy could be headed for a recession.

The Conference Board's Consumer Confidence Index dropped to 103 this month, lower than the 105.5 reading analysts surveyed by Refinitv expected and the second straight decline following a two-and-a-half-year high of 114 in July. 

Confidence remains well below a post-pandemic peak of 128.9 in June 2021, as consumers continue to grapple with high inflation, rising interest rates and recession fears.

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The Expectations Index indicating consumers' short-term optimism for the economy also fell for a second straight month in September, dropping to 73.7 from 83.3 in August. Historically, when the index drops below 80, it signals a recession within the next 12 months, the think tank said.

The proportion of respondents who said a recession is "somewhat" or "very likely" rose in September, after declining in August.

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"Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for groceries and gasoline in particular," Conference Board chief economist Dana Peterson said. 

"Consumers also expressed concerns about the political situation and higher interest rates," Peterson continued. "The decline in consumer confidence was evident across all age groups, and notably among consumers with household incomes of $50,000 or more."

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The findings also pointed to signs of rising concerns about current household finances. The share of consumers who said they were in a "good" situation fell, and the proportion citing "bad" conditions increased.