U.S. Consumer Confidence Index Deteriorates in May on Inflation Shock from Middle East Conflict

[Financial News] The Consumer Confidence Index, which measures how U.S. consumers perceive the economy and its outlook, weakened in May.
The Conference Board said on the 26th (local time) that the U.S. Consumer Confidence Index for May stood at 93.1, based on 1985=100, down 0.7 points from the previous month’s revised 93.8. The decline was smaller than the 92.0 forecast compiled by Dow Jones.
The Present Situation Index, which reflects current business and labor market conditions, fell 3.2 points from the previous month to 121.2, driving the overall decline. By contrast, the Expectations Index, which reflects consumers’ short-term outlook, rose 1.0 point from the previous month to 74.4. However, it remained below 80, a level that signals a possible recession ahead.
The May reading was based on survey responses collected from May 1 to 19, a period that included ceasefire negotiations between the U.S. and Iran as well as a strong rebound in the New York stock market.
Dana Peterson, Chief Economist at The Conference Board, said, "Consumer confidence edged down in May as the inflation shock from the war in the Middle East intensified." She added, "Compared with a month earlier, consumers’ assessment of current economic conditions and the labor market worsened somewhat."
whywani@fnnews.com Hong Chaewan Reporter