Americans’ confidence in US economy fell this month as Iran conflict sent gas prices back up

By MATT OTT, AP Business Writer

WASHINGTON (AP) — Americans’ confidence in the economy fell this month as gas prices resumed their climb after the U.S. and Iran stepped up their fighting.

The Conference Board said Tuesday that its consumer confidence index fell to 90.8 in July from 92.2 in June.

Consumers view of current business and labor market conditions fell by 3.6 points to 114.9, the third straight monthly decline.

Views about their near-term futures held steady from last month with a reading of 74.7.

Consumer attitudes had improved modestly in June as gas prices came down to around $3.70 a gallon from more than $4.50 a gallon in late April and early May. But as fighting in the Middle East escalated, the average price for a gallon of gas in the U.S. started to rise again. On Tuesday it was $4.10, according to the auto club AAA.

After being attacked by the U.S. and Israel in late February, Iran shut down the Strait of Hormuz, through which about one-fifth of the world’s oil travels, causing a spike in gas prices. That accelerated inflation, causing Americans’ inflation-adjusted incomes to decline.

Write-in responses to the survey, which were collected from July 1 to July 22, remained pessimistic. The Board said references to gas prices were down slightly but remained elevated. Respondents’ mention of food and grocery prices increased.

The number of consumers who mentioned war and geopolitics decreased this month, but the Board suspects that recent escalation in fighting between Iran and the U.S. could cause those mentions to rise in the next survey.