U.S. consumer confidence fell sharply in September, with the Conference Board’s Consumer Confidence Index falling 6.7 points to 81.9, down from 88.6 in August. The September rating comes following two prior months of decline. Consumer perceptions reflect the worsening views of both current economic conditions and the outlook for the future.

Additionally, the Present Situation Index, which follows consumers’ assessment of current business and labor market conditions, fell 7.9 points to 109.3. The Expectations Index also declined for the third straight month, 5.9 points to 63.6. This number shows consumers expecting both the business and labor market to weaken over the next six months. Finally, consumers also reported growing concerns over rising costs, especially for fuel.

Those concerns are not unfounded. According to the Common Sense Institute, the typical Iowa household now spends about $1,492 more per month than it did in 2020 to maintain the same standard of living, adding up to $60,480 since 2020. Housing and transportation lead the increase, up $545 and $365 per month, respectively. Twelve-month inflation expectations increased to 6.1%, while the share expecting higher interest rates rose to 68.4%. Planned spending on services and major purchases like homes and automobiles declined slightly as a result, while preference towards spending on cheap thrills and necessities saw a rise.

With confidence sliding for a third straight month and inflation fears climbing, consumers appear to be bracing for tougher times ahead. Check out the full report here.