Despite Stock Market Highs, a Survey Shows 66 Percent of Americans Are Reducing their Spending

U.S. consumer confidence declined slightly in May as gas prices stayed high and inflation remained elevated, a sharp contrast to soaring stock prices hover near record levels.

The Conference Board's consumer confidence index (CCI) slipped 0.7 points to 93.1 in May, the first decline after three months of gains. The measure hasn't fallen as much this year as other gauges of consumer attitudes, but it has been stuck at a low level since the pandemic. Before COVID-19, it regularly reached 130.

A separate gauge of consumer sentiment released last week by the University of Michigan fell to a record low this month. Soaring gas and food costs have worsened inflation that is outpacing the average growth in paychecks, reducing most Americans' purchasing power. A growing number of Americans have soured on President Donald Trump's economic policies, polls show, potentially creating problems for Republicans heading into the midterm elections.

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