US consumer confidence ebbs in May as inflation worries mount
Inflation worries tied to the Middle East conflict pushed more consumers to cut spending, while the Conference Board’s expectations index rose 1.0 point.
- 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.
79 Articles
79 Articles
U.S. May Consumer Confidence Index Worsens Due to High Inflation Shock from Middle East War. The U.S. consumer confidence index was found to have worsened in May due to the aftermath of the war in Iran. This index quantifies the economic conditions and outlook perceived by American consumers. On the 26th (local time), the U.S. economic research organization Conference Board [announced] that in May, the U.S.
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
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