US consumer confidence fell slightly for the second straight month as Americans’ view of their present and future prospects weakened amid persistent inflation.
- The Conference Board stated that its consumer confidence index slipped to 106.4 in May, from 108.6 in April.
- The fall suggests that persistently high inflation, more so in volatile food and energy categories, is affecting household sentiment and straining budgets.
- The Board’s present situation index, which tracks consumers’ assessment of current business and labor conditions, also dropped in May to 149.6 from 152.9 in April.
- The expectations index, which is based on consumers’ six-month projections for income, business, and labor market conditions, also dropped in May to 77.5 from 79 in April.
Lynn Franco, senior director of economic indicators at The Conference Board, stated that they expect surging prices and additional rate hikes to cause continued downside risks to consumer spending.
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Source: The Conference Board