Key facts
- US consumer confidence fell to 89.4 in August, the lowest since January.
- The Conference Board reported the index dipped from 90.2 in July.
- Consumers' short-term outlook on the economy soured, despite improved views of the present situation.
- Concerns about oil and gas prices, war, and food prices were noted in survey responses.
- Consumers expect inflation to rise to 5.8% over the next 12 months.
Americans' confidence in the economy declined again in August, reaching a seven-month low of 89.4, according to The Conference Board. This dip, down from a revised 90.2 in July, was attributed to worsening outlooks on the labor market and inflation, exacerbated by gasoline prices remaining above $4 per gallon due to ongoing geopolitical conflicts. While respondents' views on their present situation improved, their short-term expectations soured, with comments about prices, war, and jobs rising in survey write-ins. Consumers now expect inflation to reach 5.8% over the next 12 months, up from 5.6% in July. The labor market saw mixed signals, with more people reporting jobs as 'plentiful' but fewer expecting job growth in the coming months.