Gas is up 51% since February. Americans just started buying less of everything else
U.S. consumer confidence has declined as high gas prices and inflation persist, contrasting with rising stock prices. The Conference Board's consumer confidence index fell to 93.1 in May, marking the first decline after three months of gains. Many Americans are adjusting their spending habits due to rising costs, with two-thirds of respondents indicating they are cutting back on purchases.
- ▪Gas prices have surged to a nationwide average of $4.49 a gallon, up from $2.98 before the war began in February.
- ▪Inflation reached 3.8% in April, the highest in three years, significantly impacting purchasing power.
- ▪Two-thirds of consumers reported changing their spending habits in response to rising prices, with many delaying expensive purchases.
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U.S. consumer confidence declined slightly this month as gas prices stayed high and inflation remained elevated, a sharp contrast to soaring stock prices that have neared record levels.Recommended Video The Conference Board’s consumer confidence index slipped 0.7 points to 93.1 in May, the first decline after three months of gains. The index follows a separate gauge of consumer sentiment released last week by the University of Michigan, which fell to a record low this month. Spikes in gas prices as well as higher food costs have worsened inflation, which has outpaced the growth in average paychecks, reducing most Americans’ purchasing power.
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