U.S. consumer confidence fell to a 3-month low in May, as Americans worried about consistently high inflation and rising interest rates.
The Conference Board reported on Tuesday that its consumer confidence index fell to 106.4 in May from 108.6 in April, indicating that Americans have become more cautious about the purchase of expensive items such as automobiles and homes, which could hinder economic growth.
The small decline in confidence suggested that the Federal Reserve’s aggressive monetary policy actions to slow demand were starting to have an effect.
The survey also revealed a slight decline in consumers’ inflation expectations for the next 12 months, which is consistent with the view of economists that inflation has likely peaked.
