U.S. Consumer Confidence Edges Lower as Price Pressures Weigh on Households

U.S. consumer confidence slipped slightly in May, with households continuing to report pressure from rising prices and cutting back on spending.

The Conference Board Consumer Confidence Index fell 0.7 points to 93.1 in May, after April’s reading was revised upward to 93.8. The Present Situation Index also declined, indicating a weaker assessment of current business and labor market conditions.

The Expectations Index, which reflects consumers’ short-term outlook for income, business conditions and employment, increased slightly. Even so, the broader survey pointed to persistent caution among households.

Consumers cited rising prices as a reason for reducing overall spending, and many reported delaying expensive purchases. The data suggested that inflationary pressures, including those linked in the research summary to the Middle East conflict, remained a concern for U.S. households.