High oil prices and inflation pressures continue to impact household budgets, with US consumer confidence hitting a new historic low.

Consumer confidence in the United States has continued to decline in recent times, hitting a new historic low, indicating that high inflation and soaring oil prices are continuing to erode household finances and dampen consumer willingness to spend. According to data released by the University of Michigan on Friday, the preliminary Consumer Confidence Index in the United States fell from 49.8 in April to 48.2 in May, reaching a new record low. The survey covered the period from April 21 to May 4. The data shows that American consumers expect prices to rise by 4.5% in the next year, a slight decrease from the previous month; whereas long-term inflation expectations for the next 5 to 10 years remain at an annual rate of 3.4%. Anxiety about the cost of living among American consumers has been escalating, and recent substantial increases in gasoline prices have further added to household budget pressures. Consumer spending, as one of the main drivers of economic growth in the United States, is facing increasing risks. According to data from the American Automobile Association (AAA), the average gasoline price in the United States surpassed $4.50 per gallon this week, marking the first time since July 2022. Since the outbreak of the conflict in Iran, gasoline prices in the United States have risen by over 50%. Joanne Hsu, head of the Michigan University Consumer Survey, stated that approximately one-third of respondents voluntarily mentioned gasoline prices, while about 30% of respondents mentioned tariff issues. She pointed out, "Overall, consumers are still facing cost pressure, with rising gasoline prices being a major factor." The data shows that the Current Conditions Index, reflecting the current economic situation, has dropped to 47.8, reaching a historic low. However, the Expectations Index, measuring future prospects, has risen for the first time since January this year. At the same time, American consumers' evaluations of their own financial situations have dropped to the lowest level since 2009, and the buying conditions index has hit a five-month low. However, employment market data still shows some resilience. The April employment report released by the U.S. government shows that American businesses added more jobs for the second consecutive month, surpassing market expectations. The data shows that nonfarm employment in the U.S. increased by 115,000 in April, with an even higher increase in March, making the two-month cumulative increase in employment the strongest performance since 2024.