As US stock market hits new highs, 2 of 3 Americans are cutting back on spending, survey shows
Summary
U.S. consumer confidence declined slightly in May due to high gas prices and ongoing inflation, even though the stock market reached new highs. Most Americans are spending less because higher prices are making it harder to afford everyday goods, despite a still-growing economy and low unemployment.Key Facts
- Consumer confidence index dropped 0.7 points to 93.1 in May after three months of gains.
- The index remains well below pre-pandemic levels, which were around 130.
- Inflation, especially from gas and food costs, is rising faster than average pay increases.
- About two-thirds of Americans reported cutting back on spending due to higher prices.
- Households earning $100,000 or more showed increased confidence, while others reported lower confidence.
- Job market views worsened slightly with fewer people saying jobs are plentiful (25.5%).
- Gas prices have risen from $2.98 per gallon before February to about $4.49-$4.50 in May.
- Some consumers are reducing purchases of clothing, hobbies, and toys to save money.
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