Dragged down by inflation concerns, U.S. consumer confidence falls to a historic low

Golden Ten Data reported on May 22 that, due to the impact of the Iran war, the U.S. Consumer Confidence Index in May dropped to a historic low, and long-term inflation expectations also significantly worsened. Data shows that the University of Michigan's final May Consumer Confidence Index fell to 44.8. Consumers expect an annualized price increase of 3.9% over the next five to ten years, higher than April's 3.5% and marking a seven-month high. They also anticipate prices will rise by 4.8% over the next year. Gasoline prices continue to hover near the highest levels since 2022, exacerbating Americans' concerns about rising living costs and the failure to reach an agreement to end the war. The impact of inflation on household budgets, especially for low-income consumers, poses risks to the future outlook for consumption. Joanne Hsu, the lead researcher of the survey, stated: “The issue of the cost of living remains the top concern for people, with 57% of respondents proactively noting that high prices are eroding their personal financial situations, up from 50% last month.” She added, “The key point is that consumers seem to worry that inflation will not only spread beyond fuel prices to other areas, but that this upward trend may even persist for a long time into the future.”