US Consumer Confidence Slips to Seven-Month Low in August

The Conference Board's gauge of consumer confidence decreased 0.8 points to 89.4 in August, after a downward revision to the prior month's reading. A measure of expectations for the next six months fell to its lowest level since January, even as an indicator of present conditions rose to a four-month high.

High gasoline prices and broader cost-of-living pressures, alongside a slowdown in hiring, continued to weigh on American households during the survey period of Aug. 3-16. Average pump prices hovered above $4 a gallon during that span as renewed hostilities in the US-Iran conflict sent oil prices higher.

Recent data showed US retail sales fell in July by the most in more than a year, as consumers pulled back after strong growth in the first half of the year. The US on Monday announced plans to increase economic pressure on Tehran, a move that could keep fuel costs elevated if supply concerns persist.

Perceptions of the current job market improved in August, according to the Conference Board. The share of consumers who said jobs were plentiful rose, while the share saying jobs were hard to get fell. The difference between the two measures matched the widest reading this year.

Looking ahead, however, consumers were more negative about future job and income prospects, contributing to the dimmer outlook.