Research group The Conference Board finds that consumer confidence dipped in May as inflation continues to rattle the U.S.
The firm’s consumer confidence index fell to 106.4 in May from 108.6 in April. Additionally, its present situation index, which analyzes labor conditions and consumer assessment, fell to 149.6 in May from 152.9 in April.
In order to address persistent inflation, President Joe Biden plans to meet with Federal Reserve Chair Jerome Powell where they will discuss the U.S. and global economies, as well as strategies that could provide relief from rising costs.
Earlier this month, the Federal Reserve bumped its borrowing rate by half a point, and more rate increases are expected this year.
“Looking ahead, expect surging prices and additional interest rate hikes to pose continued downside risks to consumer spending this year,” said Lynn Franco, senior director of economic indicators at the Conference Board.
