WASHINGTON (AP) — U.S. consumer confidence declined slightly this month 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 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. Americans have soured on President Trump’s economic policies, polls show, potentially creating problems for Republicans heading into the midterm elections.
I’m in the same boat.
Investments are doing great, but if I didn’t already use the knowledge I gained growing up poor to live a very thrifty lifestyle, I would be absolutely screwed. Most people have no maneuverability in their budget and either have to work inhumane schedules or go without, in the wealthiest country in the world, and all because we have a couple of thousand billionaires. (And the two ruling parties exist solely to service said billionaires.)
Even so, I’m contemplating going 80%-90% into money markets and cash because while the performance of the market is great in recent years, it also scares me that it’s propped up by seven companies built basically on hype only and no profit, which presumably cannot last forever.