US consumer confidence declined in August, reaching its lowest level since the start of the year. The Conference Board reported on Tuesday that the consumer confidence index dipped to 89.4, down from 90.2 in July. This figure marks the lowest level in seven months, though it remains within a lukewarm range seen since the beginning of the year.
The decline is attributed to a deteriorating outlook for the labor market and business conditions, as well as frustration stemming from five years of elevated inflation. Furthermore, the ongoing conflict in Iran has continued to push US gasoline prices above $4 per gallon, contributing to the drop in confidence.
This current trend contrasts with previous periods of higher optimism. In late 2024 and early 2025, the consumer confidence index readings were consistently above 100.