US consumer confidence falls in August as gas prices remain above $4 per gallon
Source: Guardian Econ ↗ (cross-verified by 2 outlets — full list below)
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 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 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 3 August to 16 August, 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, 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 28 February.
It was 2.5% when Trump was inaugurated in January 2025. Consumers’ views of the current labor market improved in August, with 27% saying jobs were “plentiful”, up from 24.4% in July. However, respondents were more negative about the labor market over the next six months, with just 14.6% expecting more jobs to be available, down from 16.4% last month. The US job market stalled unexpectedly in July as employers cut 23,000 jobs. To make matters worse, Labor Department revisions erased 103,000 jobs from previously reported May and June payrolls. The unemployment rate fell to 4.1%, but for the wrong reason: thousands of people dropped out of the labor market, leaving fewer people competing for work.
⚡ Effects Interpreter
🌍World Economymedium impact
What this means for you
- ▶Ripples from this can reach factories and ports far away.
- ▶Global growth estimates are the kind of thing that shifts a touch with news like this.
🏙️Local Economylow impact
What this means for you
- ▶Small business owners nearby may gradually rework their margins.
- ▶Local firms often watch national data before setting their own prices.
🏦Rates & Bankslow impact
What this means for you
- ▶Your monthly repayments are far more likely to hold steady than to spike.
- ▶Mortgage offers might firm up or soften as the picture becomes clearer.
❤️Healthlow impact
What this means for you
- ▶Unsettling news can weigh on sleep and mood, so peace of mind matters.
- ▶Community wellbeing might dip a bit while people wait for clarity.
💷Wealthmedium impact
What this means for you
- ▶Time in the market usually matters more than timing the market around a story like this.
- ▶Steady hands usually come out ahead when news like this breaks.
🏠Housingmedium impact
What this means for you
- ▶A cooling or warming market usually takes months to fully show up in prices.
- ▶Bricks and mortar tend to hold steady while other markets swing about.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.