NEW YORK — U.S. consumer confidence edged lower in recent weeks amid ongoing tensions in the Middle East, as rising energy prices and inflation concerns weighed on household sentiment, according to surveys released this month.
The Conference Board's Consumer Confidence Index dipped slightly in May to 93.1 from a revised 93.8 in April, the organization reported on May 26. Consumers expressed heightened worries about prices and the economic impact of the Middle East conflict, with references to oil and gas costs increasing in survey responses.
Separate data from the University of Michigan showed consumer sentiment remaining near historically low levels in early June, though some measures improved modestly with easing gasoline prices. The index reflected persistent caution despite short-term relief at the pump.
The declines come as the conflict in the Middle East has disrupted global oil supplies, contributing to higher costs for consumers. Households cited inflation linked to energy prices as a key factor affecting their views of current economic conditions and future outlook.
"Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified," said Dana M. Peterson, chief economist at The Conference Board.
The Present Situation Index, which measures consumers' assessment of current business and labor market conditions, retreated in the latest Conference Board data. The Expectations Index showed a modest gain but remained subdued, indicating limited optimism about short-term income, business and employment prospects.
Consumer confidence has fluctuated in recent months amid broader economic pressures, including labor market conditions and price volatility. Lower-income households appeared particularly sensitive to changes in gasoline prices, which represent a larger share of their budgets, according to survey details.
Analysts monitor these indicators closely as they can signal shifts in consumer spending, which drives a significant portion of U.S. economic activity. Retailers and businesses have reported mixed results in recent quarters, with caution in big-ticket purchases persisting.
The surveys were conducted before mid-June developments. The Conference Board is scheduled to release June data later this month. Details on regional variations and demographic breakdowns continue to be analyzed.
As of Monday, no further major releases on consumer sentiment had been issued. Economists expect ongoing monitoring of Middle East developments and their potential effects on energy markets and household finances in coming reports.
