Elevated gas and other consumer prices, combined with stagnant wages during the ongoing Iran war, drove the decline in sentiment.
Americans’ assessment of current conditions fell 7.9 points to 109.3, while their short-term expectations slid 5.9 points to 63.6.
The weakening mood extends five years of inflation strain and could become a political risk for President Donald Trump and Republicans with midterm elections just over a month away.