Americans’ confidence in the economy fell in July as gas prices resumed their rise following increased military activity between the United States and Iran, the Conference Board said. The consumer confidence index dropped to 90.8 from 92.2 in June. The reading was still close to the lower levels seen since the start of the year, after being higher in late 2024 and early 2025. Gas Prices Lift After June DipIn June, attitudes had improved slightly as the national average for a gallon of petrol fell to about $3.70, after it had been above $4.50 in late April and early May. But as conflict in the Middle East escalated, average gas prices moved higher again. On Tuesday, the average price stood at $4.10 a gallon, according to AAA. The shift follows disruptions in oil supplies after Iran shut down the Strait of Hormuz, a passage that carries about one-fifth of the world’s oil. The closure came after Iran was attacked by the United States and Israel in late February. With fuel costs rising, inflation accelerated and Americans’ inflation-adjusted incomes declined, according to the Conference Board. Inflation Fallout And Budget StrainThe report said consumer sentiment has remained weighed down by the impact of inflation over the past five years, a backdrop that could pose a challenge for President Donald Trump and Republicans ahead of midterm elections in less than 100 days. Trump has continued to blame inflation on his predecessor, Democrat Joe Biden. However, inflation has increased since Trump took office last year, rising to 3.5% from 3% in January 2025 before jumping again after the Iran war began on February 28, when inflation was reported at 2.4%. In write-in responses, collected from July 1 to July 22, respondents remained pessimistic. The Conference Board said references to gas prices fell slightly but stayed elevated, while comments about food and grocery prices increased. Government data cited by the Board shows that bringing food home has become 33% more expensive since the beginning of 2019. It said many Americans have responded by using coupons, comparing prices and cutting back on foods they buy most often, as they absorb the largest grocery price increase in half a century. Beef was singled out as a symbol of rising grocery costs. The price of a pound of ground beef reached $6.82 in June, about 79% higher than at the start of 2019, according to Bureau of Labor Statistics data. Jobs Views Soften As Hiring SlowsThe Conference Board also reported a mixed picture in the labour market. Mentions of jobs and unemployment rose slightly compared with June, while views of the current job market declined. Expectations for the labour market over the next six months improved modestly but remained in negative territory. Separate government figures showed employers slowed hiring in June. They added 57,000 jobs, less than half the number added in the previous month. The unemployment rate fell to 4.2% from 4.3% in May, though the decline mostly reflected fewer people counted as unemployed because many out of work stopped looking. While references to war and geopolitics decreased in this month’s survey, the Conference Board said it expects mentions could rise in the next set of responses as fighting between Iran and the United States has intensified. Join the discussion? 29 July 2026
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