Consumer Confidence Index Dips in May

The Conference Board’s Consumer Confidence Index dipped 0.7 points to 93.1 in May, down from an upwardly revised 93.8 in April.

The Present Situation Index, which is based on consumers’ assessment of current business and labor market conditions, slid by 3.2 points. The Expectations Index, which is based on consumers’ short-term outlook for income, business and labor market conditions, rose by 1.0 points.

“Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified,” said Dana M. Peterson, chief economist, The Conference Board. “Consumer appraisals of current business conditions and the current labor market were moderately less positive compared to last month. This was somewhat offset by modest improvements in consumers’ expectations for business conditions and the labor market six months from now. Meanwhile, income expectations eased in May, as those anticipating less income rose.”

Demographic Insight

Among age groups, confidence ticked up for consumers aged 35-54, but trended downward for older and younger consumers, both month-over-month and on a six-month moving average basis, according to The Conference Board.

By income, confidence among higher income groups trended upward on a six-month moving average basis.

By generation, confidence improved for the Silent Generation (the oldest group) but was little changed or lower among other generations.

According to The Conference Board, consumers’ write-in responses on factors affecting the economy continued to skew towards pessimism. References to prices and oil and gas increased in frequency for a second consecutive month.

Mentions of war, geopolitics and conflict remained elevated, which analysts said was likely signaling consumers’ underlying concerns about the inflationary impacts of the war in the Middle East on their wallets, according to the analysis.

Some Good News for Beauty and Personal Care?

According to the data released by The Conference Board, consumers planning more spending on services over the next six months shifted from “yes” and “maybe” to “no” in May. Future spending plans on services were mixed.

Consumer spending trends in 2026 remained focused on “cheap thrills” and necessary services.

On a positive note, among all service categories, beauty and personal care remained among the top three spending targets, along with restaurants/bars/take-out and streaming/internet/mobile services.

There was some increase in demand for discretionary services like personal travel, fitness, amusement parks and gambling, according to the analysts.