In August, consumer confidence in the United States fell to its lowest level since the beginning of the year, with a significant deterioration in economic expectations for the next six months.

U.S. consumer confidence weakened further in August, dropping to its lowest level since the beginning of this year. Persistently high gasoline prices and the pressure of living costs, combined with rising consumer concerns about future employment, income, and the business environment, are putting pressure on American household confidence. Data released by the Conference Board on Tuesday showed that the consumer confidence index fell by 0.8 points to 89.4 in August, while the data for the previous month was revised downward. This result was below the median expectation of 90.2 set by economists surveyed by the media. The latest data further revealed that while American consumers' assessments of the current economy and job market had improved, their outlook for the next six months had significantly worsened. In terms of individual indicators, the present situation index, which measures consumers' perceptions of the current business and employment environment, reached its highest level in four months. At the same time, the expected index for the economic outlook over the next six months declined to its lowest level since January of this year, indicating that consumers' concerns about the future economic environment are deepening. Regarding the job market, consumers' assessments of the current situation have actually improved. In August, the proportion of consumers who believe "there are plenty of job opportunities" increased, while the percentage who think "jobs are hard to find" decreased. The difference between the two is one of the labor market indicators closely monitored by economists, and this metric has reached the highest level of the year in August. However, when consumers were asked about the situation in the next six months, their attitude became noticeably more cautious. Respondents grew more pessimistic about future job opportunities and income prospects. This division of "currently acceptable, but weakening in the future" has become one of the most prominent features of this consumer confidence survey. High energy prices are also an important factor affecting consumer sentiment. The survey covered the period from August 3 to 16, during which the average gasoline price in the U.S. remained above $4 per gallon. With escalating conflicts between the U.S. and Iran, rising international oil prices further increased the fuel spending of American consumers. On Monday, the U.S. announced plans to further increase economic pressure on Iran. If geopolitical tensions continue to raise concerns about crude oil supply, gasoline prices may remain high. Beyond energy, broader living cost pressures are also weighing on household confidence. Even though some inflation indicators have recently cooled, consumers still face high daily expenses. As consumer confidence declines, signals of cooling U.S. consumer spending have already emerged. Recent data show that July retail sales in the U.S. experienced the largest drop in over a year. Following strong consumption growth in the first half of 2026, American households are beginning to cut back on some expenses. If consumer sentiment regarding future employment and income prospects continues to weaken, it could further impact consumption willingness in the coming months. Consumer spending is a crucial component of the U.S. economy; therefore, the simultaneous cooling of consumer confidence and retail sales has raised market concerns about whether U.S. economic growth can continue to remain resilient. Another consumer survey also conveyed similar signals. Data released earlier by the University of Michigan indicated that U.S. consumer confidence fell for the first time in three months in August, primarily due to concerns about the deteriorating future business environment and rising inflation. The two surveys collectively show that although the current job market in the U.S. has not yet experienced a full-scale decline, high living costs, rising energy prices, and slowed hiring activities are gradually affecting consumers' perceptions of the future economic outlook. Overall, U.S. consumers in August displayed a clear contradictory mindset. Evaluations of the current job market improved, but there was a more pessimistic outlook regarding employment, income, and the business environment for the next six months. As consumer confidence has dropped to its lowest level since the beginning of the year, coupled with a significant decline in July retail sales, the stability of future consumer spending will become an important indicator in assessing the outlook for U.S. economic growth.