US consumer confidence dips in July as gas prices rise amid Iran conflict

The Conference Board said its consumer confidence index fell to 90.8 in July from 92.2 in June, remaining in the modest range seen since the start of the year. The decline coincided with a rise in gasoline prices, which averaged $4.10 per gallon, up from about $3.70 in June, after U.S. and Iranian forces intensified fighting in the Middle East.

The conflict follows Iran’s shutdown of the Strait of Hormuz in February, a key oil transit route, which contributed to higher fuel costs and added pressure to household budgets. Survey respondents noted continued concerns about gas prices, while mentions of food and grocery costs increased.

Government data show food prices have risen 33% since early 2019, prompting many shoppers to use coupons, compare prices and cut back on certain items. Ground beef, for example, reached $6.82 per pound in June, nearly 80% higher than in 2019, according to the Bureau of Labor Statistics.

Labor market sentiment showed mixed signals: references to jobs and unemployment rose slightly, and views of the current job market fell, although expectations for the labor market six months ahead improved modestly but stayed negative. Employers added 57,000 jobs in July, less than half the pace of the previous month, and the unemployment rate edged down to 4.2% from 4.3% in May, largely reflecting a rise in discouraged workers.

Analysts noted that while mentions of war and geopolitics declined in the latest survey, the recent escalation between the United States and Iran could cause those concerns to re-emerge in future readings.