NEW YORK, May 26 (Xinhua) -- U.S. consumer confidence declined slightly in May as persistently high gasoline prices and elevated inflation continue to strain household budgets, standing in sharp contrast to soaring domestic stock prices.
The Conference Board Consumer Confidence Index dipped 0.7 points to 93.1 in May, down from an upwardly revised 93.8 in April, according to preliminary survey results issued on Tuesday. The Present Situation Index, which is based on consumers' assessment of current business and labor market conditions, retreated by 3.2 points to 121.2. Conversely, the Expectations Index, based on consumers' short-term outlook for income, business, and labor market conditions, rose by one point to 74.4.
The survey period for the month's preliminary results spanned May 1 to May 19, a timeframe heavily impacted by the ongoing conflict in the Middle East, which continues to place significant upward pressure on global prices.
"Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified," said Dana M. Peterson, chief economist at The Conference Board. "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."
The decline in the Conference Board's metric aligns with a separate gauge of consumer sentiment compiled by the University of Michigan, which plummeted to a record low this month.
Consumers' average and median 12-month inflation expectations ticked downward but remained elevated, according to the latest survey results.
Across the U.S. economy, sudden spikes in gasoline prices and higher food costs have significantly worsened overall inflation. This upward price pressure has outpaced the growth in average paychecks in recent months, effectively reducing the purchasing power of most Americans.
The oil price shock remains the primary driver of consumer anxiety. Gasoline prices have soared to a nationwide average of 4.49 U.S. dollars a gallon, a drastic increase from 2.98 dollars recorded at the end of February. Pump prices have remained painfully elevated for consumers, hovering at or above 4.50 dollars a gallon for nearly all of May.
