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Consumer confidence in May reached a six-month low of 102.3, indicating a gloomy outlook on the economy and job prospects.
The closely followed index dropped 1.4 points from the previous month's revised figure of 103.7, as reported by the Conference Board.
This level of confidence is the lowest observed since November of the previous year.
Economists surveyed by The Wall Street Journal had anticipated a lower index of 99.
A forward-looking confidence gauge for the next six months slightly decreased from 71.7 in April to 71.5.
Consistent readings below 80 in this gauge often serve as a signal of an upcoming recession within a year.
The expectations index has remained below the 80 level for all months except one within the past 15 months.
A measure reflecting consumer sentiment about the current state of the economy declined from 151.8 to 148.6.
Ataman Ozyildirim, senior director of economics at the board, noted that consumers' assessment of current employment conditions saw the most significant deterioration.
Despite expressing concerns about the economy, Americans have continued to spend on dining out, traveling, and buying new cars.
However, economists warn that persistent high inflation and rising interest rates could further slow the economy and potentially lead the U.S. into a recession.
Market reactions to the news included a decline in the Dow Jones Industrial Average (DJIA) but a rise in the S&P 500 (SPX) during Tuesday's trades.