Updated
Updated · The Guardian · Aug 25
US Consumer Confidence Falls to 89.4, a 7-Month Low as Gas Tops $4
Updated
Updated · The Guardian · Aug 25

US Consumer Confidence Falls to 89.4, a 7-Month Low as Gas Tops $4

3 articles · Updated · The Guardian · Aug 25

Summary

  • The Conference Board’s consumer confidence index slipped to 89.4 in August from 90.2, extending a lukewarm stretch and marking its weakest reading in seven months.
  • Gasoline above $4 a gallon and persistent inflation drove the drop: survey responses collected Aug. 3-16 showed elevated concern about prices, especially oil and gas, alongside rising mentions of war, food costs, trade and jobs.
  • Consumers drew a split picture of the economy, with views of current conditions and job availability improving—27% said jobs were plentiful, up from 24.4%—while six-month expectations deteriorated.
  • That caution follows a weak July labor report: employers cut 23,000 jobs, revisions erased 103,000 more from May and June, and the 4.1% unemployment rate fell partly because workers left the labor force.
  • Inflation remains a political and policy risk less than 70 days before the midterms, with the Fed’s preferred PCE gauge at 3.7% in June and July data due Wednesday.

Insights

Could hidden refinery bottlenecks and Middle East tensions push gas prices high enough to shatter what remains of consumer optimism this year?
With wage growth lagging behind soaring energy costs, are American households secretly slipping into a recession despite a stable present economy?
If the labor force continues to shrink while inflation persists, how long can the Federal Reserve delay a drastic shift in interest rates?