US consumer confidence declined slightly this month as gas prices remained high and inflation stayed elevated, presenting a sharp contrast to soaring stock prices that have approached record levels. The Conference Board's consumer confidence index slipped 0.7 points to 93.1 in May, marking the first decline after three consecutive months of gains.
Consumer Sentiment Wanes
The index follows a separate gauge of consumer sentiment compiled by the University of Michigan, which fell to a record low this month. Spikes in gas prices, alongside higher food costs, have worsened inflation, which has outpaced the growth in average paychecks in recent months, thereby reducing most Americans' purchasing power.
Political Implications
Polls indicate that Americans have soured on President Trump's economic policies, potentially creating problems for Republicans as they head into the midterm elections. The rising cost of living is becoming a central issue for voters.
Gas Price Surge
Gas prices have soared to a nationwide average of $4.49 a gallon, up from $2.98 just before the war began at the end of February. Prices have been at or above $4.50 a gallon for nearly all of May, further straining household budgets.
