Americans’ confidence in US economy falls as Iran conflict sends gas prices higher - AP News

What the report says

The Associated Press reported that U.S. consumer confidence weakened in July as gasoline prices began rising again amid escalated fighting involving the United States and Iran. The Conference Board’s consumer confidence index slipped to 90.8 from 92.2 in June, keeping the gauge in a muted range seen for much of the year after readings above 100 in late 2024 and early 2025.

AP said confidence had improved somewhat in June when gas prices eased to about $3.70 a gallon, down from more than $4.50 in late April and early May. But the national average was back up to $4.10 on Tuesday, according to AAA, after the conflict disrupted oil markets. AP reported that Iran closed the Strait of Hormuz after U.S. and Israeli attacks in late February; the waterway carries about one-fifth of global oil shipments.

The report described inflation as a continuing strain on households and a political risk for President Donald Trump and Republicans ahead of midterm elections less than 100 days away. AP cited inflation at 3.5%, up from 3% at Trump’s inauguration in January 2025 and from 2.4% when the Iran war began Feb. 28. The article noted that Trump continues to assign blame for inflation to former President Joe Biden.

Survey comments remained downbeat, with mentions of food and grocery costs increasing. AP cited government data showing groceries are 33% more expensive than at the start of 2019, while ground beef reached $6.82 a pound in June. Consumers also expressed weaker views of current job conditions, even as expectations for the labor market improved slightly but remained negative.