U.S. Consumer Confidence Declines Amid High Gas Prices and Inflation

U.S. consumer confidence decreased by 0.7 points to 93.1 in May, marking the first decline after three months of increases, according to the Conference Board. This decline contrasts with rising stock prices that have approached record levels. A separate survey from the University of Michigan indicated a record low in consumer sentiment this month. High gas prices, which have risen to a nationwide average of $4.49 per gallon from $2.98 before the war began in late February, along with increased food costs, have contributed to inflation that exceeds wage growth, impacting purchasing power. The Conference Board's survey revealed that two-thirds of respondents are adjusting their spending habits due to rising prices, with many planning to economize on various items. Inflation reached 3.8% in April, the highest in three years, driven by increased gas and grocery prices. Average hourly earnings, when adjusted for inflation, decreased in April compared to the previous year for the first time in three years.