The U.S. consumer confidence index worsened in May in the wake of the Iran war. The index quantifies the economic conditions and outlook as perceived by U.S. consumers.
The Conference Board, a U.S. economic research group, said on the 26th (local time) that the U.S. consumer confidence index for May was 93.1 (1985=100), down 0.7 points from the previous month's revised 93.8.
The decline was smaller than the 92.0 consensus forecast compiled by Dow Jones.
The present situation index, which reflects current business and labor market conditions, came in at 121.2, down 3.2 points from the previous month, driving the overall deterioration.
By contrast, the expectations index, which reflects consumers' short-term outlook, rose 1.0 point to 74.4 from the previous month. However, the expectations index has remained below the 80 level, an area that suggests an impending recession.
The May consumer confidence reading reflects survey responses collected from May 1–19. This period included the U.S.-Iran cease-fire negotiations and a strong rebound in New York stocks.
Dana Peterson, chief economist at the Conference Board, said, "Consumer confidence edged down in May as inflation shocks from the Middle East war intensified," and noted, "Compared with a month ago, consumers' assessments of current economic conditions and the labor market worsened somewhat."