U.S. July consumer confidence falls to 90.8, missing 92.0 forecast

U.S. consumer confidence weakened in July as The Conference Board's index fell to 90.8 from 92.2 in June, leaving sentiment stuck in the subdued range seen for most of the year and well below the readings above 100 seen in late 2024 and early 2025. Households remained broadly pessimistic, with rising gasoline and grocery costs and weaker views of the job market weighing on sentiment. The survey, collected from July 1 to July 22, showed references to gas prices remained elevated even after easing slightly, while mentions of food and grocery prices increased. Average U.S. gasoline prices climbed back to $4.10 a gallon on Tuesday from around $3.70 in June after escalating fighting involving the U.S. and Iran pushed energy costs higher. After being attacked by the U.S. and Israel in late February, Iran shut the Strait of Hormuz, disrupting a route that carries about one-fifth of the world's oil and helping drive a spike in gasoline prices and inflation. Inflation has risen to 3.5% from 3% in January 2025 and from 2.4% when the Iran war began on Feb. 28, while inflation-adjusted incomes have declined. Grocery prices have also remained a major strain: food bought for home consumption is 33% more expensive than at the start of 2019, and ground beef reached $6.82 a pound in June, up 79% over the same period. Labor-market sentiment remained soft. References to jobs and unemployment increased slightly, views of current labor-market conditions deteriorated, and expectations for the next six months improved only modestly while staying negative. Hiring slowed sharply last month, with employers adding 57,000 jobs, and the unemployment rate edged down to 4.2% from 4.3% in May largely because some unemployed people stopped looking for work. The reading underscores continued caution among consumers, a key signal for spending and broader economic momentum.