The Conference Board reported a slight decline in consumer confidence in May, even as Americans’ short-term outlook for business and labor conditions improved.

By yourNEWS Media Newsroom,

American consumer confidence weakened slightly in May as inflation concerns and elevated gasoline prices continued to affect how households viewed the economy.

The Consumer Confidence Index fell 0.7 points to 93.1 in May, down from an upwardly revised 93.8 in the previous month, according to The Conference Board.

The index is closely watched as a measure of how consumers assess current economic conditions and their own financial situations. Consumer confidence can influence spending behavior, making it an important indicator for businesses, policymakers and financial markets.

Although the headline number declined, the report showed some improvement in Americans’ near-term outlook. The Expectations Index, which measures consumers’ views of income, business conditions and the labor market over the next six months, increased 1.0 point to 74.4 in May.

Dana Peterson, chief economist for The Conference Board, said the overall dip reflected renewed pressure on household sentiment tied to rising costs.

“Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified,” Peterson said in a statement.

Peterson said the slightly weaker Consumer Confidence Index was partly offset by modest gains in expectations for business conditions and the labor market. However, the report also showed consumers were less optimistic about future income, indicating that households may be bracing for slower earnings growth or tighter personal finances in the months ahead.

The May reading suggests Americans remain cautious despite some improvement in expectations for jobs and business activity. Inflation and fuel costs continue to shape consumer sentiment, while uncertainty over income may limit confidence even when parts of the economic outlook improve.