The Conference Board US Consumer Confidence Index Falls in May

On Tuesday, The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released the results of its Consumer Confidence Survey for May.

• The Consumer Confidence Index decreased 0.7 points in May, falling to a reading of 93.1 (1985=100) from an upwardly revised 93.8 in April.
• The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—fell 3.2 points to a reading of 121.2.
• The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—increased 1.0 points to a reading of 74.4. Expectations remained below the threshold of 80, which typically signals a recession ahead.

The cutoff date for preliminary results was May 19. The Conference Board noted that the survey period encompassed the ongoing war in the Middle East, which has placed upward pressure on prices globally.

In a statement accompanying the report, The Conference Board Chief Economist Dana Peterson said:

“Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified. Consumer appraisals of current business conditions and the current labor market were moderately less positive compared to last month. This was somewhat offset by modest improvements in consumers’ expectations for business conditions and the labor market six months from now. Meanwhile, income expectations eased in May, as those anticipating less income rose.”