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.
107 Articles
107 Articles
US Consumer Confidence Falls in May
Consumer confidence in the United States declined marginally in May due to the continued persistence of price shocks from the ongoing Middle East conflict between the United States and Iran, according to a May 26 statement from think tank The Conference Board. The board’s Consumer Confidence Index fell 0.7 points to 93.1 this month from April. The Present Situation Index, which assesses current labor market and business conditions, declined 3.2 …
The Times of Northwest Indiana
ECONOMY
Consumer confidence slips for first time in months
U.S. consumer confidence in May saw its first drop after three months of gains as Americans grapple with rising prices and inflation, both driven up by the U.S.-Israeli conflict in Iran, the monthly consumer confidence index report said Tuesday. Confidence dipped 0.7 points to 93.1 in May, a low not seen since 2025, according to the index,…
Rising prices and war in Iran dent consumer confidence as shoppers cut back
A report adds to the evidence of growing anxiety among American consumers about the high cost of living. The recent spike in fuel prices is particularly challenging for lower-income households despite a largely stable labor market and few signs of broad layoffs.
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.
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