U.S. Consumer Confidence Slips as Gas Prices Rise Again

U.S. consumer confidence weakened in July as national gasoline and diesel prices rose sharply, putting renewed pressure on household budgets and business costs.

The Conference Board said Tuesday, July 28, that its Consumer Confidence Index fell to 90.8 in July from an upwardly revised 92.2 in June. The reading reflects how consumers view current economic conditions and the months ahead, including their expectations for income, jobs, inflation and interest rates.

At the same time, the latest federal fuel data showed regular gasoline averaging $4.096 per gallon nationwide for the week ending July 27. That was 9.5 cents higher than the previous week. On-highway diesel averaged $5.313 per gallon, up 17.9 cents from the prior week.

What changed in July

The gasoline and diesel increases are separate price movements, although both can affect the broader cost of living. Gasoline hits drivers directly through commuting, errands, school trips and weekend travel. A sustained increase can leave households with less money for restaurants, entertainment, retail purchases or savings.

Diesel has a different reach because it is widely used in freight transportation, agriculture, construction, deliveries and other commercial activity. Higher diesel costs can raise the expense of moving food, materials and packages, while also adding pressure for contractors, farmers, restaurants and service businesses that rely on trucks or equipment.

The Conference Board said references to prices, oil and gas in consumer write-in responses eased slightly in July but remained elevated. Mentions of food and grocery prices increased. The survey was conducted from July 1 through July 22, during a period that included the ongoing conflict in the Middle East. The Associated Press reported that renewed fuel-price pressure coincided with the decline in confidence, but that timing does not by itself establish that higher fuel prices caused the full change in consumer attitudes.

What the confidence reading does and does not show

Consumer confidence is a forward-looking survey measure, not a direct tally of what Americans actually bought. A weaker reading can signal that households may become more cautious, but it does not prove that consumer spending, income or employment has already turned lower.

The July report showed that the Present Situation Index, which tracks views of current business and labor-market conditions, fell 3.6 points to 114.9. The Expectations Index held at 74.7 and remained below the level generally associated with a favorable outlook.

Those results point to concern about economic conditions, but they are not a recession declaration or a definitive forecast. Actual spending data may tell a different story if households continue to use income, savings or credit to maintain purchases despite higher prices.

What to watch next

The next major test will come Thursday, July 30, when the Bureau of Economic Analysis is scheduled to release the advance estimate of second-quarter 2026 gross domestic product and the June 2026 Personal Income and Outlays report, both at 8:30 a.m. Eastern time.

The GDP report will provide a broader measure of economic output. The Personal Income and Outlays release will offer additional information about household income and spending, including the pattern of consumer demand that the confidence survey cannot measure directly.

Readers should watch those reports alongside fuel prices, inflation expectations, retail activity and business cost pressures. If spending and income remain firm, the July confidence decline may reflect concern without an immediate pullback. If spending weakens while fuel and other household costs remain elevated, the survey signal could become more consequential for economic growth.

For now, the clearest message is that households and businesses are facing renewed fuel-price pressure at the same time consumers are expressing less confidence in current conditions. That raises a risk to spending momentum, but the available data do not yet show that a downturn has begun.

How are higher fuel costs affecting your household or business? Share the highest and lowest pump prices you are seeing locally.

Sources

• The Conference Board — U.S. Consumer Confidence
• U.S. Energy Information Administration — Gasoline and Diesel Fuel Update
• Associated Press — Consumer confidence and fuel prices
• U.S. Bureau of Economic Analysis — Release Schedule