US Consumer Confidence Slipped in May

Increasing inflationary pressures stemming from the war in Middle East is a major worry for  U.S. consumers. That’s reflected in the latest Consumer Confidence Index released by the Conference Board, which dipped 0.7 points to 93.1 (1985=100) in May, down from an upwardly revised 93.8 in April.

Consumers’ write-in responses on factors affecting the economy continued to skew towards pessimism in May, the board noted. References to prices and oil and gas increased in frequency for a second consecutive month, while mentions of war, geopolitics, and conflict remained elevated—likely signaling consumers’ underlying concerns about the inflationary impacts of the war in the Middle East on their wallets.

These findings were reinforced in consumers’ responses to a set of special questions the Conference Board asked in May, which found:

• Two-thirds of consumers cited cutting back on spending overall due to rising prices, as of May
• Most who are cutting back bought fewer items and delayed expensive purchases.
• Many who said they are delaying purchases of items they want rather than need, plan to buy them in the next six months
• Consumers planned to economize on clothing and footwear, hobby items, and games/toys.

The monthly Consumer Confidence Index is based on an online sample conducted for The Conference Board by Toluna, a technology company that delivers real-time consumer insights and market research through its technology, expertise and panel of 36 million-plus consumers.