Americans' confidence in US economy falls as Iran conflict sends gas prices higher

Key Points:

• The Conference Board reported a decline in U.S. consumer confidence in July, with the index falling to 90.8 from 92.2 in June, reflecting ongoing economic concerns amid rising gas prices and geopolitical tensions.
• Gas prices increased to an average of $4.10 per gallon in July after a previous decline, driven by escalated conflict between the U.S. and Iran and Iran's shutdown of the Strait of Hormuz, which disrupted global oil supply.
• Inflation remains a significant issue, with food prices rising sharply—grocery costs have increased 33% since 2019, and ground beef prices surged 79%—leading Americans to adopt cost-saving measures like couponing and cutting back on favorite foods.
• The U.S. labor market showed signs of slowing, with only 57,000 jobs added in June and a slight drop in unemployment to 4.2%, though this was partly due to discouraged workers leaving the labor force.
• Despite a decrease in consumer mentions of war and geopolitics in July, the Conference Board anticipates that ongoing tensions between the U.S. and Iran may increase these concerns in future surveys, potentially impacting economic outlooks further.