US consumer confidence hits historic low in May

US consumer confidence fell to a record low in May as rising gasoline prices due to war in the Middle East fueled nervousness about worsening affordability, a survey showed on Friday.

The University of Michigan reported that the Consumer Confidence Index fell to a final reading of 44.8, an all-time low, from 48.2 earlier in the month. The index was 49.8 in April. Economists polled by Reuters predicted the index would remain unchanged at 48.2.

"The cost of living continues to be a top concern, with 57% of consumers spontaneously mentioning that high prices were eating into their personal finances, up from 50% last month," said Joanne Hsu, director of Consumer Research.

"Independents and Republicans registered reductions in confidence, with both groups reaching the lowest readings of the current presidential administration", he highlighted.

The survey's measure of consumer expectations for inflation for next year rose to 4.8% from 4.7% in April. Consumer expectations for inflation over the next five years rose to 3.9% from 3.5% last month.

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Source: CNN