Americans’ confidence in the economy declined again this month as the ongoing conflict in Iran continued to push U.S. gasoline prices above $4 per gallon, the Associated Press reported recently.
The Conference Board said Tuesday that its consumer confidence index dipped to 89.4 in August from 90.2 in July. That was the lowest level in seven months but was essentially within the same lukewarm range it has been in since the beginning of the year. In late 2024 and early 2025, readings were consistently above 100.
Respondents’ views of their present situation improved, but their short-term outlook soured.
Americans remain frustrated with the economy after five years of elevated inflation, potentially posing a risk to President Donald Trump and Republicans in the midterm elections, which are less than 70 days away.
Write-in responses to the board’s survey, collected from Aug. 3 to Aug. 16, were slightly more pessimistic this month. References to prices in general—and oil and gas prices specifically—remained elevated. Comments about war and geopolitics, food prices, trade and jobs rose in August.
Trump continues to blame high prices on his predecessor, Democrat Joe Biden, yet inflation has risen since Trump’s inauguration last year.
The Federal Reserve’s preferred inflation gauge — the personal consumption expenditures price index — was up 3.7% in June from a year earlier. That was down from May’s 4.1% year-over-year increase but up from 2.8% before the Iran war began on Feb. 28. It was 2.5% when Trump was inaugurated in January 2025.
Click here for the full report from The Associated Press.
