IndependentsJun 02, 2026
State of Retail: 6 Things Retailers Should Know About Consumers TodaySurveysJun 05, 2026
Consumers to Cut Back on Spending Amid Rising Prices, Survey Shows
When conducting its May consumer confidence survey, The Conference Board asked extra questions about consumers’ budgeting strategies.
Inflation weighed on consumers’ minds for the second month in a row, The Conference Board said when releasing its May consumer confidence survey. More survey-takers mentioned prices and oil and gas in their write-in responses, a signifier they are concerned about the inflationary impacts of the war in the Middle East, The Conference Board said.
New York—Consumer sentiment was essentially flat in May as higher prices persisted, and consumers told The Conference Board they are cutting back on spending because of inflation.
The Conference Board’s Consumer Confidence Index, its monthly, survey-based measure of how consumers are feeling about the economy, was 93.1 in May, down slightly from an upwardly revised 93.8 in April.
Consumers were feeling less optimistic about their current situation but had a rosier view of the near future, the survey shows.
The Conference Board’s Present Situation Index, which measures consumers’ outlook on current business and labor market conditions, fell 3.2 points month-over-month to 121.2. More survey-takers described business conditions as “bad” and jobs as “hard to get” in May.
However, the Expectations Index, which is based on consumers’ outlook on income, business, and labor market conditions six months from now, rose by one point to 74.4.
Two of the index’s three components, net expectations for business and net expectations for labor market conditions six months from now, rose though survey-takers were slightly less positive about expected household income.
Looking at specific demographics, confidence was up among consumers aged 35-54—a mix of Gen Xers and millennials—but trended downward for consumers who are younger than 35 and older than 54.
Consumer confidence also rose among higher-income groups and voters who are registered as Independent.
The Conference Board Chief Economist Dana M. Peterson pointed to the inflationary impacts of the ongoing war in the Middle East as the reason consumer confidence slipped in May.
She said: “Consumer appraisals of current business conditions and the current labor market were moderately less positive compared to last month. This was somewhat offset by modest improvements in consumers’ expectations for business conditions and the labor market six months from now.”
Related stories will be right here …
The Conference Board’s Consumer Confidence Index, its monthly, survey-based measure of how consumers are feeling about the economy, was 93.1 in May, down slightly from an upwardly revised 93.8 in April.
Consumers were feeling less optimistic about their current situation but had a rosier view of the near future, the survey shows.
The Conference Board’s Present Situation Index, which measures consumers’ outlook on current business and labor market conditions, fell 3.2 points month-over-month to 121.2. More survey-takers described business conditions as “bad” and jobs as “hard to get” in May.
However, the Expectations Index, which is based on consumers’ outlook on income, business, and labor market conditions six months from now, rose by one point to 74.4.
Two of the index’s three components, net expectations for business and net expectations for labor market conditions six months from now, rose though survey-takers were slightly less positive about expected household income.
Looking at specific demographics, confidence was up among consumers aged 35-54—a mix of Gen Xers and millennials—but trended downward for consumers who are younger than 35 and older than 54.
Consumer confidence also rose among higher-income groups and voters who are registered as Independent.
The Conference Board Chief Economist Dana M. Peterson pointed to the inflationary impacts of the ongoing war in the Middle East as the reason consumer confidence slipped in May.
She said: “Consumer appraisals of current business conditions and the current labor market were moderately less positive compared to last month. This was somewhat offset by modest improvements in consumers’ expectations for business conditions and the labor market six months from now.”
In May, the Conference Board asked survey-takers extra questions about their budget priorities now and in the next six months.
When asked how they have changed their overall spending habits because of higher prices, 67 percent of survey-takers said they are cutting back while 33 percent said they haven’t changed their spending habits (26 percent) or are spending more (7 percent).
When asked more specifically what they are doing right now to save money, 61 percent of consumers said they are buying fewer items; 50 percent are putting off the purchase of expensive items; and 47 percent are buying things they need, not things they want.
In addition, 47 percent of survey-takers said they were opting for less expensive versions of the things they normally purchase.
When asked how they plan to change their spending habits six months from now, half of respondents said they plan to delay purchases of expensive items.
Forty percent said they will buy the same items with the understanding their overall spending will increase, and 38 percent said they will go for products they need over products they want.
In May, The Conference Board asked survey-takers a special set of questions about their current and future spending habits, including a product-by-product breakdown of their budgets. (Chart courtesy of The Conference Board)
The Conference Board also asked survey-takers to outline their spending plans for the next six months on a product-by-product basis.
The results, which can be seen in the chart above, showed that the main areas where consumers plan to cut back are clothing and footwear—44 percent of consumers said they plan to spend less in this area—hobby items (34 percent), and games and toys (30 percent).
Consumers said they plan to maintain spending on essentials, with pharmaceuticals (64 percent), as well as groceries, personal care products, and household supplies (all 61 percent) ranking as the leading categories for maintained spending over the next six months.
The May consumer confidence survey, conducted for The Conference Board by technology company Toluna, was taken between May 1 and 19.
Editors' Picks
Sponsored by
More on Surveys
The Latest
IndependentsJun 05, 2026
Pennsylvania Jewelry Store To Close After 79 YearsJim Springer, owner of Dunkelberger’s Fine Jewelry, is heading into retirement.
CollectionsJun 05, 2026
Rebel Jewelry’s Charm Symbolizes Perseverance for Pride MonthThe “Tunnel” charm, our Piece of the Week, celebrates Pride Month with its design inspired by hope and the light at the end of the tunnel.
SourcingJun 05, 2026
State of Diamonds: The Way Forward for Natural DiamondsThe jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in VegasAs gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.
AuctionsJun 04, 2026
Treasures from Maurice Tempelsman’s ‘Marvelous’ Life Head to AuctionUp for auction at Sotheby’s, the collection of Tempelsman’s personal effects includes a Cartier Tank watch Jackie O. gifted him.
Weekly QuizJun 05, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsJun 04, 2026
Buddha Mama to Spend the Summer in AspenThe Miami-based fine jewelry brand will host its first summer residency in the Colorado mountain town from June 5 to Aug. 23.
MajorsJun 04, 2026
AGS Honors Late Peter Yantzer, Holds Time Capsule CeremonyThe organization also announced its international board of directors for the 2026-2027 term.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
MajorsJun 04, 2026
Neiman Marcus’ Downtown Dallas Store to Close in SeptemberSaks Global confirmed the closure this week, spelling the end for a store that’s been part of downtown Dallas for more than 100 years.
ColumnistsJun 03, 2026
Peter Smith: When Top Talent Leaves and What It Says About YouSmith discusses how managers should handle a top performer's exit, warning that a poor response could have a lasting impact.
GradingJun 03, 2026
GIA’s Tracr Investment Is First Step Toward Industry-Owned PlatformThe Gemological Institute of America is now a 30 percent stakeholder in Tracr, the De Beers-backed blockchain for diamonds.
WatchesJun 03, 2026
The 1916 Company Taking Pre-Owned Rolexes on the Road, AgainThe retailer is bringing Rolex Certified Pre-Owned watches to five U.S. cities in 2026 for collectors to see, try on, and purchase.
IndependentsJun 03, 2026
Jessica Alba Is the New Face of Gabriel & Co.The actress and entrepreneur stars in the jeweler’s new campaign that celebrates life’s quiet moments.
TrendsJun 03, 2026
State of Design: Only the Innovative Will SurviveThe price of gold has risen, affecting the number of pieces designers make, the materials they use, and how they position themselves.
FinancialsJun 02, 2026
Signet Jewelers’ Q1 Sales Up 2% As It Focuses on ‘Core Four’ The jewelry retailer is zeroing in on Zales, Jared, Kay Jewelers, and Blue Nile as it looks to create unique brand identities for each.
SourcingJun 02, 2026
Leader Appointed for Botswana’s Diamonds for Development Fund Dr. Akinwumi Adesina, a development economist, will head the fund created to help Botswana diversify its economy.
WatchesJun 02, 2026
Watch Industry Veteran James Marks Joins Sotheby’sSotheby’s has appointed the former Phillips executive as its global head of private sales and retail in its watches division.
AuctionsJun 02, 2026
Sotheby’s to Auction 10-Carat Blue Diamond, 1960s Harry Winston Necklace A private collection of five Paraíba tourmalines also will be up for sale at Sotheby’s High Jewelry auction in New York, scheduled for June 16.
IndependentsJun 02, 2026
State of Retail: 6 Things Retailers Should Know About Consumers TodayFrom Gen Z’s view of luxury to “doom spending,” these are the six consumer trends to note this year.
Events & AwardsJun 01, 2026
Design Atelier Brands Have a Big Night at Emotional Couture Design AwardsThe show started by honoring Mildred Marcano, ended with a tearful Beth Anne Bonanno, and recognized a dozen-plus designers in between.
SourcingJun 01, 2026
RapNet Rebranding as Rapaport TradeThe revamped online diamond marketplace will feature pricing intelligence and data-driven tools for more efficient buying and selling.
SourcingJun 01, 2026
Gemfields’ Higher-Quality Emerald Auction Achieves $26.8MThe miner said demand for higher-quality emeralds is stable, but there is notable caution in the market.
CollectionsMay 29, 2026
Cultus Artem’s Necklace Is the Oasis in Las Vegas’ DesertThe “River of Heaven” necklace, our Piece of the Week debuting at Couture, combines 26 salt and pepper diamonds spaced by Tahitian pearls.
IndependentsMay 29, 2026
Meet the 2026 Retailer Hall of Fame InducteesThis year’s inductees include second-, third-, and fourth-generation jewelers.
Events & AwardsMay 28, 2026
JCK Announces Jesse Itzler as 2026 Keynote SpeakerThe author, speaker, and entrepreneur will give his presentation, “Spiritual Billionaire,” on Saturday morning.
Events & AwardsMay 28, 2026
JCK Rocks To Ride With NellyThree-time Grammy award-winning artist Nelly is set to perform at the annual event at Tao Beach on Sunday night.
MajorsMay 28, 2026
Signet Jewelers to Buy The Clear Cut Signet will integrate the online-only, natural diamond-focused jeweler into Blue Nile, which it wants to position as a higher-end retailer.
