Lubbock Times

The Conference Board released its report on May 28, 2024, titled “Confidence Ticks Up after Three Straight Declines but Consumers Remain Anxious about the Future,” evaluating Consumer Confidence for May 2024. The report highlighted that consumers' perceived likelihood of a recession over the next 12 months rose for the second consecutive month in May.

The Conference Board Consumer Confidence Index® measures households' optimism or pessimism regarding their financial situation and their ability to secure or retain employment. While the overall index showed an increase, the Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—remained below 80 for the fourth straight month. This level suggests a potential recession ahead.

House Budget Committee Chairman Jodey Arrington (R-TX) commented on Americans’ growing fears of a recession: “Fears of recession rose for the second straight month. This is on the heels of a trending spike in inflation and paltry first quarter economic growth. Whether the experts have determined we are in a recession or not, the American people feel the painful effects of their wages and savings receding. We must rein-in Washington’s wasteful spending, return to proven pro-growth policies, and restore fiscal sanity in Washington before it’s too late.”

Chairman Arrington attributed these economic concerns to policies under President Biden's administration. He noted that inflation has increased by 19.3 percent since President Biden took office, causing families to spend nearly $17,000 more per year to maintain their previous standard of living.

The Conference Board’s May report also indicated that consumers' assessment of their ‘Family’s Current Financial Situation’ has become less positive for May. Coupled with high prices and unpredictable economic indicators, consumers' perception of a U.S. recession over the next 12 months has risen for two consecutive months.

Chairman Arrington emphasized his stance on managing national debt: “If we can grow one percent over the two percent that CBO projects over the 10-year budget window, just one percent will bring down the deficit by $3 trillion. But we have to link that with mandatory spending reforms and reining in spending; we have to be able to grow the economy faster than we're spending faster than we're borrowing. If we do that, just like our forefathers after World War Two did it, we can bring the debt-to-GDP down and we can have our best and brightest economic days ahead of us.”