Business & Finance
US consumer confidence falls to seven-month low in August
High gas prices driven by the ongoing conflict in Iran weigh on the short-term economic outlook of Americans.
The short version
- The Conference Board's consumer confidence index fell to 89.4 in August from 90.2 in July, marking the lowest level in seven months.
- While consumers reported improved sentiment regarding their present situation, their short-term expectations for the economy and the labor market declined.
- High gasoline prices, which remain above $4 per gallon due to geopolitical conflict in Iran, continue to be a primary source of economic frustration for Americans.
Key facts
- The consumer confidence index dipped to 89.4 in August from 90.2 in July, continuing a downward trend from readings consistently above 100 in late 2024 and early 2025.[The Guardian]
- The ongoing conflict in Iran has sustained US gasoline prices above $4 per gallon, heavily influencing consumer sentiment during the August 3 to August 16 survey period.[The Guardian]
- In June, the personal consumption expenditures price index was up 3.7% year-over-year, which is higher than the 2.8% recorded before the Iran conflict began on February 28.[The Guardian]
- In August, 27% of survey respondents characterized current jobs as plentiful, up from 24.4% in July, though those expecting more jobs to be available over the next six months dropped to 14.6%.[The Guardian]
- The US job market cut 23,000 jobs in July, while the Labor Department downwardly revised payroll gains from May and June by 103,000 jobs.[The Guardian]