MAY CONSUMER CONFIDENCE 57.2 — 16yr LOW; INFLATION EXPECTATIONS AT ALL-TIME HIGH
The Conference Board’s Consumer Confidence Index plunged to 57.2 in May — the lowest level since Oct-92 — from an upwardly revised 62.8 in April (previously reported as 62.3).
The Present Situation Index fell to 74.4 from 81.9, while the Expectations Index dropped to 45.7 from 50 in April.
The Conference Board cited weakening business and job conditions, “coupled with growing pessimism about the short-term future.” Inflation expectations, driven by high gas prices, are at an all-time high and are likely to shoot higher in the coming months.
Survey respondents seeing “bad” business conditions rose to 30.6% from 26.5% in April, and those anticipating worsening conditions rose to 33.6% from 27.4% last month.