US consumer confidence slips in July

U.S. consumer confidence weakened in July 2026 as households grew less positive about current economic conditions. The Conference Board Consumer Confidence Index fell by 1.4 points to 90.8, down from 92.2 in June. The decline extends a broader downward trend that has been in place since late 2021, reflecting continued caution among consumers.

The survey’s Present Situation Index, which captures views of current business and labor market conditions, dropped by 3.6 points to 114.9. This was the third consecutive monthly decline, indicating that fewer respondents judged current conditions as favorable. In contrast, the Expectations Index, which measures the short‑term outlook for income, business, and labor market conditions, was unchanged at 74.7 in July.

The July results are based on responses collected between July 1 and July 22, 2026. During this period, consumers’ write‑in responses remained generally pessimistic, underscoring ongoing unease about the economic environment. Despite some changes in market conditions, the overall tone of feedback did not show a marked improvement.

References to prices and to oil and gas eased in frequency compared with earlier months but remained elevated in the July survey. This suggests that while cost concerns may have moderated slightly, they continue to feature prominently in household assessments of the economy. Mentions of war and geopolitics decreased over the sample period, indicating a modest shift in what consumers highlighted as primary concerns.

Energy costs remained a visible factor for households in late July. On Tuesday, July 28, 2026, the U.S. national average price for a gallon of gasoline was about $4.10, based on data from AAA cited in the coverage. Elevated pump prices can weigh on disposable income, and they remain closely watched by consumers.

Within the July survey, consumers’ average and median 12‑month inflation expectations were described as less elevated than before. Even so, a majority of respondents, 61.3%, still anticipated higher interest rates over the next 12 months. This combination of somewhat lower inflation expectations but persistent concern about borrowing costs reflects a cautious consumer stance.

The divergence between a weakening Present Situation Index and a flat Expectations Index points to softening sentiment about current conditions alongside persistently guarded views of the future. The unchanged expectations reading at 74.7 remains below levels typically associated with strong optimism about growth and jobs.

Taken together, the July data indicate that U.S. consumers are confronting a mix of high, though fluctuating, energy prices and moderating inflation expectations, while remaining wary of interest rate trends. This environment has contributed to the continued slide in overall confidence and ongoing caution in how households perceive both present and future economic conditions.