Consumer confidence edged downward, but outlook for income, business and labor gained: report

American consumer confidence dropped slightly in May as inflationary pressure and high gasoline prices weighed on their concerns. 

The Consumer Confidence Index dipped last month 0.7 points, to 93.1, down from an upwardly revised 93.8 the previous month, according to The Conference Board, a nonprofit think tank whose economic analysis is widely followed. 

The index is a key economic indicator measuring the level of confidence consumers feel about the overall economy and their own personal financial situations. 

The Expectations Index – which measures consumers' short-term outlook for income, business and labor market conditions — rose by 1.0 points to 74.4 in May. 

“Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified,” Dana Peterson, chief economist for The Conference Board, said in a statement. 

The moderately less positive CCI, Peterson said, was offset by modest improvements in expectations for business conditions and the labor market in the next six months, but income expectations in May showed consumers are anticipating less income in the period.