US Consumer Confidence Dips in May as Oil Costs Drive Inflation Angst

U.S. consumer confidence edged lower in May, pressured by rising oil prices from Middle East tensions that intensified cost-of-living concerns. The Conference Board's index fell 0.7 point to 93.1 on May 26, missing the prior month's upwardly revised 93.8 but beating economists' forecast of 92. The present situation gauge dropped 3.2 points to 121.2, a three-month low, while the expectations index rose to 74.4, the highest since December 2025. Chief economist Dana Peterson said the Middle East war's inflationary spillover drove the decline, with about two-thirds of respondents cutting spending as prices climbed. Labor market views softened, with those seeing jobs as "plentiful" at the lowest since 2021, though the "hard to get" share also fell. A near-55% majority expect stocks to rise over the next year, supporting future sentiment. Separately, the University of Michigan's survey reported confidence falling to historic lows with worsening long-term inflation expectations.