Business & Finance
US consumer confidence drops to seven-month low amid high gas prices
The Conference Board's confidence index dipped to 89.4 in August as persistent inflation and higher fuel costs weighed on consumer outlooks.
The short version
- The Conference Board reported that the U.S. consumer confidence index fell to 89.4 in August, its lowest point in seven months.
- Higher gasoline prices, remaining above $4 per gallon due to conflict in Iran, contributed to worsening near-term economic expectations.
- While respondents reported a slight improvement in present conditions and current job availability, short-term outlooks for the economy and future hiring weakened.
- The figures come as inflation concerns persist ahead of upcoming U.S. midterm elections.
Key facts
- The Conference Board's consumer confidence index decreased from 90.2 in July to 89.4 in August.[Associated Press · ABC News]
- Gasoline prices in the U.S. have remained above $4 a gallon, influenced by the ongoing conflict in Iran.[Associated Press · ABC News]
- The personal consumption expenditures price index rose 3.7% year-over-year in June, down from 4.1% in May but up from 2.8% prior to the start of the Iran war on Feb. 28.[ABC News]
- In August, 27% of survey respondents characterized current jobs as plentiful, up from 24.4% in July, but the share expecting more jobs over the next six months fell to 14.6%.[ABC News]
- U.S. employers cut 23,000 jobs in July, and Labor Department revisions removed a combined 103,000 jobs from May and June payroll figures.[ABC News]