Wall Street awaits consumer confidence and PCE inflation reports next week

Iran war cited as contributor to inflation remaining above 3 percent

Wall Street is set to receive two closely watched economic reports next week that will test both consumer sentiment and the pace of inflation. The Conference Board’s August consumer confidence index arrives Tuesday, followed Wednesday by the personal consumption expenditures price gauge for July — the Federal Reserve’s preferred inflation measure.

Both releases come as consumer confidence has run weak through most of 2026 and inflation has stayed stubbornly above 3 percent. The combination has shaped household purchasing decisions and expectations for monetary policy across the year, with each monthly reading providing a fresh test of how American consumers are absorbing the price impact.

Analysts expect Tuesday’s Conference Board survey to show consumer confidence fell for a second straight month in August, the Associated Press reported. The anticipated decline follows a slip in July and reflects persistent pressure on household budgets, the AP said.

The Wednesday PCE release covers July data and is the central bank’s preferred inflation gauge. The release is parsed by investors and Federal Reserve policymakers for any sign of cooling or acceleration in price pressures.

Through 2026, both the PCE price index and the broader Consumer Price Index have run above 3 percent year-over-year, according to Federal Reserve data tracked by the St. Louis Fed’s FRED database. The July PCE figure due Wednesday will show whether inflation eased or intensified relative to that pattern.

Higher oil prices tied to the U.S. war with Iran have fed into the inflation persistence, the AP reported, describing the conflict as having “helped fuel inflation by stifling oil supplies worldwide.” The disruption has flowed through to elevated gasoline prices at the pump and higher shipping costs for a wide range of products, from groceries to clothing.

The result has been a sustained squeeze on household budgets that has tracked through the year in consumer sentiment readings. The Conference Board’s July reading registered a decline, and the August figure due Tuesday will indicate whether households grew more discouraged last month or whether sentiment began to stabilize. Wednesday’s PCE release will provide the next read on whether the inflation backdrop feeding those sentiment numbers is easing.