WASHINGTON (AP) — U.S. consumer confidence declined slightly this month as gas prices stayed high and inflation remained elevated, a sharp contrast to soaring stock prices hover near record levels.
The Conference Board's consumer confidence index slipped 0.7 points to 93.1 in May, the first decline after three months of gains. The measure hasn't fallen as much this year as other gauges of consumer attitudes, but it has been stuck at a low level since the pandemic. Before COVID-19, it regularly reached 130.
A separate gauge of consumer sentiment released last week by the University of Michigan fell to a record low this month. Soaring gas and food costs have worsened inflation that is outpacing the average growth in paychecks, reducing most Americans' purchasing power. Americans have soured on President Trump's economic policies, polls show, potentially creating problems for Republicans heading into the midterm elections.
Consumer sentiment is mostly gloomy even as the economy is still growing and the unemployment rate has stayed low. Some economists argue that the gap reflects inequality in a "K-shaped" economy, with higher-income Americans benefitting from rising stock prices and still spending while lower-income households struggle.
