US consumer confidence falls in August as gas prices remain above $4 per gallon
Confidence index drops to 89.4 in August from 90.2 in July amid frustration after five years of elevated inflation Americans’ confidence in the economy declined again this month as the ongoing conflict in Iran continued to push US gasoline prices above $4 per gallon. The Conference Board said on Tuesday that its consumer confidence index dipped to 89.4 in August from 90.2 in July. That was the…
U.S. consumer confidence fell to its lowest level in seven months in August as gas prices remain high, according to a recent report by the Conference Board. The index dropped to 89.4 from 90.2 in July, marking a decline that has been relatively stable since the beginning of the year. While respondents' views of their current economic situation improved, their outlook for the near future turned more pessimistic.
Despite this, overall consumer sentiment remains somewhat lukewarm. The persistent high gas prices, which have stayed above $4 per gallon, are a significant concern for Americans, particularly after five years of elevated inflation. This situation could potentially impact President Donald Trump and Republicans in the upcoming midterm elections, which are just under 70 days away.
Write-in responses to the survey also indicated a more pessimistic view among respondents regarding prices in general, with specific mentions of oil, gas, war, geopolitics, food prices, trade, and jobs. Notably, President Trump continues to place blame for the high prices on his predecessor, Joe Biden, even though inflation has increased since Trump's inauguration in January 2025.
The government's preferred measure of inflation, the personal consumption expenditures (PCE) index, came in at 3.7% in June, a slight decrease from May's 4.1% but still higher than the 2.5% it was when Trump took office in January 2025. The government will release its July PCE data on Wednesday.
Written by urgent.news from Associated Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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