US Conference Board Consumer Confidence edged down from 93.8 to 93.1 in May, slightly beating expectations of 91.6 but still highlighting growing pressure on households from elevated energy costs tied to the Middle East conflict. The decline suggests consumers are becoming somewhat less comfortable with current economic conditions even as broader recession fears remain contained.
The deterioration was concentrated in assessments of present conditions. The Present Situation Index fell from 124.4 to 121.2, reflecting weaker views on current business and labor market conditions. However, the Expectations Index improved modestly from 73.4 to 74.4, suggesting consumers still see some stabilization ahead over the next six months despite ongoing geopolitical and inflation uncertainty.
Dana Peterson, Chief Economist at The Conference Board, said “consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified.” She added that consumers were “moderately less positive” about current business and labor conditions, though this was partly offset by improved expectations for the months ahead.
At the same time, Peterson warned that income expectations weakened as more consumers anticipated lower earnings, underscoring concerns that persistent inflation may increasingly pressure household purchasing power.
| Indicator | Previous | Latest | Expectation |
|---|---|---|---|
| Consumer Confidence | 93.8 | 93.1 | 91.6 |
| Present Situation Index | 124.4 | 121.2 | — |
| Expectations Index | 73.4 | 74.4 | — |
