US Consumer Confidence Crashes to 7-Month Low as Inflation Bites
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American consumer confidence fell to an eight-nine point four reading in August, reaching its lowest level in seven months, according to Conference Board data released Tuesday. Persistent inflation, driven by gasoline prices staying above four dollars per gallon amid conflict with Iran, severely impacted short-term economic outlooks among surveyed consumers. Meanwhile, the Personal Consumption Expenditures price index stood at three point seven percent in June, reflecting ongoing pressures on household budgets. Sentiment regarding the labor market also deteriorated following a July jobs report showing a reduction of twenty-three thousand payrolls and downward revisions to previous months. The declining sentiment creates significant political challenges ahead of upcoming midterm elections as voters express widespread frustration with sustained high living costs. Federal Reserve officials continue monitoring these economic indicators closely to determine future monetary policy adjustments as consumer pessimism deepens across multiple key economic sectors nationwide.
Timeline
- On late 2024 Consumer confidence readings consistently remained above one hundred points.
- On early 2025 Consumer confidence index maintained levels above one hundred threshold.
- On May 2025 Personal Consumption Expenditures price index was recorded at four percent.
- On June 2025 Personal Consumption Expenditures price index registered at three point seven percent.
- On July 2025 Payrolls experienced an unexpected cut of twenty three thousand jobs.
- On August 3 2025 Conference Board survey collection period began regarding consumer sentiment views.
- On August 16 2025 Conference Board survey collection period concluded across multiple demographics.
- On August 19 2025 Conference Board released official consumer confidence index dropping to eighty nine.
- On August 26 2025 Bureau of Economic Analysis scheduled upcoming economic data release figures.
- On November 2025 United States electorate will participate in upcoming midterm elections.
- On coming months Federal Reserve will evaluate inflation gauges for policy adjustments.
- On coming year Consumer sentiment may recover if energy prices stabilize downward.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.































