US consumer confidence ebbs in May as inflation worries mount
Inflation worries tied to the Middle East conflict and higher prices weighed on spending plans, with two-thirds of respondents saying they are cutting back.
- University of Michigan's consumer sentiment index fell to a record-low 44.8 in May, its third straight decline, as a majority of respondents said rising prices were hurting their personal finances.
- Inflation jumped to 3.8% in April, the highest in three years and far above the Federal Reserve's 2% target, while gas prices soared to a nationwide average of $4.49 a gallon from $2.98 before the war began in late February.
- Real wages shrank in April for the first time in three years, and two-thirds of survey respondents reported cutting back spending on purchases and delaying expensive acquisitions, with many economizing on clothes, shoes, and toys.
- Tuesday's survey revealed confidence grew among households with incomes at or above $100,000 while it fell for most others, reflecting what some economists argue is a K-shaped economy benefiting higher-income Americans through stock gains.
- Ben Ayers, Nationwide senior economist, warned that "higher prices and faster inflation" will continue shaping consumer caution, while polls show Americans have soured on President Trump's economic policies, potentially creating problems for Republicans heading into midterm elections.
42 Articles
42 Articles
As U.S. stock market hits new highs, 2 of 3 Americans cutting back on spending, survey shows
U.S. consumer confidence declined slightly this month as gas prices stayed high and inflation remained elevated, a sharp contrast to soaring stock prices that have neared record levels. The Conference Board’s consumer confidence index on Tuesday slipped 0.7 points to…
"Consumer confidence fell marginally in May as the inflationary impacts of the war in the Middle East intensified," says the institution's chief economist
US consumer confidence ebbs in May as inflation worries mount
U.S. consumer confidence eased in May as worries about inflation linked to the war with Iran intensified, offsetting an improvement in households' perceptions of the labor market, a survey showed on Tuesday.
Denver Post
Goshen NewsAs US stock market hits new highs, 2 of 3 Americans are cutting back on spending, survey shows
US consumer confidence declined slightly in May as gas prices stayed high & inflation remained elevated, a contrast to soaring stock prices.
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