US consumer confidence ebbs in May as inflation worries mount

[WASHINGTON] US consumer confidence eased in May as worries about inflation linked to the war with Iran intensified, offsetting an improvement in households’ perceptions of the labour market, a survey showed on Tuesday (May 26).

The Conference Board said its consumer confidence index slipped 0.7 points to 93.1 this month. Data for April was revised higher to show the index at 93.8 instead of 92.8. Economists polled by Reuters had forecast the index would drop to 92.0.

“Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified,” said Dana Peterson, chief economist at the Conference Board.

“References to prices and oil and gas increased in frequency for a second consecutive month, while mentions of war, geopolitics, and conflict remained elevated -– likely signalling consumers’ underlying concerns about the inflationary impacts of the war in the Middle East on their wallets.” REUTERS