The report mirrors the US Federal Reserve’s concerns about a slowing labor market that prompted its 0.5 percentage point rate cut last week.

U.S. consumer confidence dropped by the most in three years in September amid mounting fears over the labor market, though more households planned to buy a home over the next six months. The Conference Board survey on Tuesday also showed consumers expected inflation to increase in the coming year,

Concerns about the labor market's future sent the Consumer Confidence Index tumbling in September to 98.7, its lowest point in three years, the Conference Board reported on Tuesday.