The consumer confidence index fell to 60.8 in May from an upwardly revised 66.0 last month, the Conference Board reported Tuesday.
Economists predicted the index would be 66.5.
The present situation index dipped to 39.3 from 40.2, while the expectations index dropped to 75.2 from 83.2.
“A more pessimistic outlook is the primary reason for this month’s decline in consumer confidence,” said Lynn Franco, director of the board’s consumer research center.
“Consumers are considerably more apprehensive about future business and labor market conditions as well as their income prospects,” Franco said. “Inflation concerns, which had eased last month, have picked up once again. On the other hand, consumers’ assessment of current conditions declined only modestly, suggesting no significant pickup or deterioration in the pace of growth.”