WASHINGTON — The Conference Board’s consumer confidence index slipped 0.7 points to 93.1 in May 2026. The decline marked the first drop after three consecutive months of gains.

Two-thirds of survey respondents said they are cutting back on spending due to rising prices. Most of those reducing spending reported lowering overall purchases and delaying expensive acquisitions. Many consumers also indicated plans to spend less on clothes, shoes, hobby items, and toys and games.

Gas prices averaged $4.49 per gallon nationwide in May 2026, up from $2.98 before the war began at the end of February 2026. Prices remained at or above $4.50 per gallon for nearly the entire month.

Inflation stood at 3.8% in April 2026, the highest level in three years and well above the Federal Reserve’s 2% target. Grocery prices rose more quickly in April 2026, likely due to higher shipping costs. Beef prices also surged that month as drought and other factors reduced cattle herds.

Average hourly earnings, adjusted for inflation, declined in April 2026 compared to the same month in 2025—the first such drop in three years. Inflation-adjusted retail sales also fell in April after rising in March.

Consumer confidence increased in May 2026 among households with incomes at or above $100,000, while it declined for most other income groups. The share of respondents who described jobs as “plentiful” dropped to 25.5%, the lowest level in three years. Meanwhile, 18.6% said jobs were “hard to get,” the smallest percentage since October 2025.

Americans’ expectations for economic growth six months in the future improved in May 2026, even as their outlook on the job market worsened slightly. “The prospect of higher prices and faster inflation continues to loom over confidence readings, with many households taking a more cautious approach to purchases this year,” Ben Ayers, Nationwide senior economist, said.

The U.S. economy was still growing in May 2026 and the unemployment rate remained low.