Rising prices and inflation fears continue to put downward pressure on consumer confidence, according to The Conference Board’s latest report…(Conference Board)
- M-O-M: The Conference Board Consumer Confidence Index fell 4.5 points to 98.7 in May, economists had projected that the index would stay above a hundred.
- Y-O-Y: Consumer confidence was down 28 points from the same time one year ago.
The decline in confidence continues to be led by the expectations index which fell 7.3 points to 66.4 and is now at its lowest level since March 2013.
- The Present Situation Index saw a slight decline to 147.1 from 147.4 last month.
Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said it’s all about inflation…
- “Consumers’ grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices. Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022…Purchasing intentions for cars, homes, and major appliances held relatively steady—but intentions have cooled since the start of the year and this trend is likely to continue as the Fed aggressively raises interest rates to tame inflation.”