CHICAGO, May 27 (Xinhua) — The Consumer Confidence Index released Friday by the University of Michigan (UM) Consumer Surveys fell to 58.4 in the May 2022 survey from 65 .2 in April and below 82.9 last May.
The expectations index fell to 63.3 from 69.4 in April and below 89.4 last May. The current conditions index fell to 55.2 from 62.5 in April and below 78.8 last May.
Most of that decline was concentrated in expectations for the economy, with the outlook for the year ahead dropping 25.8% and the five-year outlook down 14.3%, the US economist said. UM Joanne Hsu, Director of Investigations.
In addition, consumers continued to express negative views on current buying conditions for homes and durable goods, primarily due to inflation fears.
While consumers expressed continued pessimism about business prospects, they were less optimistic about future prospects for their personal finances. Less than a quarter of consumers expect their financial situation to deteriorate within a year. In the long term, 52% of consumers expect their financial situation to improve over the next five years.
Expected wage gains fell slightly from April to an average of 1.8% overall, with under-45s expecting a 4.6% year-on-year income gain.
Inflation was cited as the main factor in the decline in living standards over the past year by 38% of all households, a frequency not seen since 2008. While consumers generally anticipated wage gains over next year, about 49% of consumers overall expected their incomes to rise less than prices the following year.
The consumer surveys are a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews take place throughout the month by telephone.