US consumer confidence dropped by 0.7 points to 93.1 in May 2026, marking a decline despite forecasts predicting a lower figure near 92.0 [1, 2, 3]. The Conference Board released the data on May 26, showing that confidence weakened amid rising inflation and geopolitical risks [1, 2, 3, 4, 5]. Dana Peterson, chief economist at The Conference Board, said, "Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified" [1].
The April consumer confidence index was revised upward to 93.8 from an earlier estimate of 92.8, indicating a stronger start to the spring before May's fall [1, 2, 3]. The decline in May was driven partly by inflation concerns tied to tensions in the Middle East. US military strikes on Iranian Revolutionary Guard vessels and missile sites occurred on May 25, escalating regional conflict and affecting oil prices [3]. Gasoline prices averaged $4.49 per gallon or more in May, pushing consumer costs higher [4].
Two-thirds of consumers reported cutting back spending or delaying purchases due to rising prices, signaling widespread caution in the face of persistent inflation [6, 3, 4, 5]. In April, the inflation rate hit 3.8%, the highest in three years and well above the Federal Reserve's 2% target [4, 5]. Real average wages declined year-over-year for the first time in three years, reducing consumers' purchasing power [4, 5]. Senior economist Ben Ayers at Nationwide Mutual Insurance said, "High prices and the prospect of faster inflation continue to cloud consumer confidence, with many households adopting a more cautious approach to purchasing this year" [4].
The labor market gave mixed signals. The perception of job availability dropped to a three-year low of 25.5%, but fewer people said jobs were hard to find, at 18.6% [6, 3, 4, 5]. The 'current conditions' index fell 3.2 points to a three-month low, while expectations for the next six months rose to 74.4, suggesting some optimism about future economic conditions [2, 3].
Consumer spending showed resilience despite inflation and geopolitical tensions, supported in part by tax rebates [3]. The May consumer confidence survey was conducted from May 1 to 19, before the late-month military strikes [3]. The US government will likely continue monitoring economic impacts amid ongoing Middle East tensions and higher energy costs.
