U.S. consumer confidence hits record low amid inflation concerns

Odaily Odaily reported that, affected by the Iran war, the U.S. consumer confidence index fell to a record low in May, and long-term inflation expectations also significantly worsened. Data shows that the final reading of the University of Michigan's consumer confidence index for May fell to 44.8. Consumers expect an annualized price increase of 3.9% over the next five to ten years, up from 3.5% in April, marking a seven-month high. They also expect prices to rise by 4.8% in the coming year. Gas prices continue to hover near their highest levels since 2022, exacerbating Americans' concerns about rising living costs and the failure to reach an agreement to end the war. The impact of inflation on household budgets, especially for low-income consumers, poses risks to future spending prospects. Joanne Hsu, the survey's director, said: "The cost of living remains the primary concern, with 57% of respondents voluntarily pointing out that high prices are eroding their personal finances, up from 50% last month." She stated: "The key point is that consumers seem to worry that inflation may not only spread beyond fuel prices to other areas but could also persist for a long time into the future." (Jin Shi)