American consumer confidence took a hit this month as fuel costs remained steep and rising prices continued to strain household budgets, creating a stark disconnect with Wall Street’s strong performance that has pushed markets close to all-time highs.
The Conference Board reported that its monthly consumer confidence measure dropped by 0.7 points to reach 93.1 in May, marking the first monthly decrease following three consecutive months of improvement.
This decline mirrors findings from the University of Michigan’s separate consumer sentiment survey, which hit an all-time low this month. Rising fuel costs combined with increased food expenses have intensified inflationary pressures, which have grown faster than typical wage increases in recent months, effectively reducing the buying power of most Americans. Public opinion polling indicates Americans have grown increasingly critical of President Trump’s economic policies, a trend that could spell trouble for Republicans as they approach the midterm elections.
Fuel costs have jumped dramatically to a national average of $4.49 per gallon, up from $2.98 just before the conflict started in late February, and prices have remained at or above $4.50 per gallon throughout nearly all of May.
