Consumer Confidence Slips to Seven-Month Low as Gas Prices and Inflation Weigh

The Conference Board reported Tuesday that U.S. consumer confidence declined to 89.4 in August from 90.2 in July, marking the lowest level in seven months, according to reporting from the Guardian and PBS NewsHour. The drop reflects mounting frustration over elevated gasoline prices and persistent inflation.

Gasoline prices remain above $4 per gallon due to the ongoing conflict in Iran, according to Guardian reporting. Americans' confidence in the economy has declined amid what the Guardian describes as frustration after five years of elevated inflation.

Context shows the recent weakness in consumer mood. According to the Guardian, consumer confidence readings were consistently above 100 in late 2024 and early 2025. The sentiment has since softened. The Guardian reports that consumer confidence has been in a lukewarm range since the beginning of 2026, essentially flat.

Consumer confidence measures track whether Americans believe the economy is expanding or contracting and form one gauge of likely consumer spending behavior.