U.S. consumer confidence declined in July as Americans grew more cautious about current business and labor market conditions, according to a report released Tuesday by The Conference Board. The organization’s consumer confidence index dropped to 90.8 from a revised 92.2 in June, marking the third consecutive month of softness in consumers’ assessment of the present economic environment.

The measure reflecting current business and labor market conditions fell by 3.6 points to 114.9, signaling increasing concerns about ongoing economic challenges. Meanwhile, the expectations index, which gauges consumers’ short-term outlook on income, business, and labor market conditions, remained stable at 74.7.

A notable aspect of the report was the deterioration in employment perceptions. The labor market differential—a metric representing the gap between the percentage of consumers who say jobs are “plentiful” and those who say jobs are “hard to get”—declined to 3.1%. This indicator is closely watched by economists as it reflects the degree of tightness in the labor market and can influence future hiring trends.

In contrast to The Conference Board’s findings, the University of Michigan released a separate consumer sentiment survey for July that showed a modest improvement. The Michigan report attributed the rise in sentiment to falling gasoline prices, which eased some inflationary pressures for consumers.

However, some economists caution that the resurgence of conflict in the Middle East could disrupt these positive trends. Rising geopolitical tensions have the potential to drive up oil prices, which may weigh on consumer sentiment in the coming weeks if fuel costs increase again.

Overall, while short-term expectations have held steady, the decline in consumers’ views of current economic and employment conditions underscores ongoing uncertainty in the U.S. economy amid fluctuating energy prices and global unrest.