Us consumer confidence worsened in May compared with the previous month because of heightened concerns about inflation.
The final consumer confidence index of the University of Michigan fell to 82.9 in May from 88.3 in April, little change from the initial figure and in line with the median estimate of economists surveyed by Bloomberg.
The index reflects consumers' expectations of price increases in the coming year. Respondents said inflation was expected to average 4.6 per cent over the next 12 months, the highest level in a decade. It also makes consumers more pessimistic about their financial prospects.
At the same time, consumers do not expect upward price pressure to last longer. Respondents said the average inflation rate is expected to be 3% over the next five years.
"it is not surprising that the momentum of economic recovery has led to recent growth in supply and demand, leading consumers to expect inflation to soar," Richard Curtin, who is in charge of the survey, said in a report.
At the same time, "the impact of higher prices on disposable income will be offset by more than $2,000bn in savings and improved employment prospects over the past year," Curtin said.
The status quo index fell to 89.4 from 97.2 in the previous month. The expectation index fell to 78.8 from 82.7.