US consumer confidence, which reflects how American consumers perceive the economy, deteriorated this month compared with last month.
The Conference Board, a US economic research organization, said Tuesday that its Consumer Confidence Index (1985=100) for May fell 0.7 point to 93.1 from 93.8 in April (revised). The reading came in slightly above the consensus forecast of 92.0 compiled by Dow Jones. The May survey was conducted between the 1st and the 19th of this month.
The Present Situation Index, which reflects current business and labor market conditions, led the decline, falling 3.2 points from the previous month to 121.2. The Expectations Index, which reflects consumers' short-term outlook, rose 1.0 point from April to 74.4. An Expectations Index reading below 80 signals that consumers anticipate the economy could enter a recession.
"Consumer confidence slipped slightly in May as inflation shocks from the Middle East war intensified," said Dana Peterson, chief economist at the Conference Board. "Consumers' assessments of current business conditions and the labor market worsened somewhat compared with a month earlier."
