U.S. consumer confidence dips to seven-month low as gas prices stay above $4

U.S. consumer confidence slid to 89.4 in August, the lowest level in seven months, as Americans pointed to gasoline prices stuck above $4 per gallon and the ongoing conflict in Iran. The Conference Board’s index dipped from 90.2 in July, remaining within the same sluggish range that has persisted since the start of the year. Confidence readings were consistently above 100 in late 2024 and early 2025. While respondents viewed their current situation slightly more favorably, their short-term outlook darkened. Elevated inflation over the past five years continues to frustrate consumers, potentially impacting the midterm elections less than 70 days away. Survey write-in responses collected August 3–16 showed increased mentions of general prices, oil and gas prices, war and geopolitics, food prices, trade and jobs. President Donald Trump has blamed high prices on his predecessor, Democrat Joe Biden, but inflation has risen since Trump took office in January 2025. The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, rose 3.7% year-over-year in June, down from 4.1% in May but up from 2.8% before the Iran war began on February 28, 2026. It stood at 2.5% when Trump was inaugurated. The government is scheduled to release July PCE data on August 26. Consumer views of the current labor market improved, with 27% saying jobs were “plentiful,” up from 24.4% in July. However, expectations for the next six months soured, with just 14.6% anticipating more jobs, down from 16.4%. The U.S. job market unexpectedly stalled in July as employers cut 23,000 jobs, and Labor Department revisions erased 103,000 jobs from previously reported May and June payrolls. The unemployment rate fell to 4.1%, but largely because thousands of people dropped out of the labor force, reducing competition for available work.