Americans' confidence in the economy decreased this month, with the Conference Board's consumer confidence index falling to 89.4 in August from 90.2 in July. This marks the lowest level in seven months, though it remains within the lukewarm range observed since the start of the year.
The decline comes as the ongoing conflict in Iran continues to keep US gasoline prices above $4 per gallon. Respondents' short-term outlook on the economy worsened, even as their views of their current financial situation improved.
Frustration among Americans persists after five years of elevated inflation. The Federal Reserve's preferred inflation gauge, the personal consumption expenditures (PCE) price index, was up 3.7% in June from a year earlier.
Views of the current labour market improved in August, with 27% of respondents stating jobs were "plentiful", an increase from 24.4% in July. However, expectations for the labour market over the next six months were more negative, with only 14.6% anticipating more jobs, down from 16.4% last month.