Consumer sentiment in the United States fell to its weakest level since the start of the year in August, as households grew increasingly concerned about the business climate and the outlook for the labor market.
Data released on Tuesday by the Conference Board showed its consumer confidence index declined by 0.8 points to 89.4, with the previous month's reading also revised downward. The sub-index tracking expectations for the next six months slipped to its lowest point since January, while a measure of current conditions climbed to a four-month peak.
The report highlighted that elevated gasoline prices, broader cost-of-living pressures, and a slowdown in hiring continued to weigh on American households' sentiment this month. This follows earlier figures revealing that U.S. retail sales posted their steepest decline in over a year in July, suggesting consumers are beginning to pull back on spending after a robust first half of 2026.
The survey was conducted between August 3 and August 16. During that period, the average price of gasoline in the U.S. remained above $4 per gallon, driven up by a renewed escalation in the U.S.-Iran conflict that boosted oil prices. On Monday, Washington announced further increases in economic pressure against Tehran, raising the possibility that fuel costs could stay elevated if supply concerns persist.
According to the Conference Board's findings, consumer views on the current job market improved slightly in August. The share of respondents reporting that jobs are "plentiful" rose, while the proportion saying jobs are "hard to get" declined. The gap between these two measures—a figure closely watched by economists—reached its highest level this year.
However, looking ahead, consumers turned more pessimistic about employment and income prospects, and their outlook on future business conditions also became more cautious. Despite this, the percentage of respondents planning to take a vacation within the next six months rose to its highest level since January.
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