STORY: U.S. consumer confidence fell to a 3-month low in May, as concerns about persistently high inflation and rising interest rates weighed on the minds of Americans.
A survey from the Conference Board out Tuesday showed that Americans have become more cautious. about buying big ticket items, including cars and homes, which could curtail economic growth..
Though the drop in consumer confidence was small, it suggested the Federal Reserve's aggressive monetary policy actions to slow demand were starting to have an impact.
The survey showed consumers' expectations for inflation over the next 12 months dipped slightly, which aligns with the view of many economists that inflation has likely peaked.
Along with motor vehicles and houses, consumers were also less inclined to buy major household appliances like refrigerators, washing machines, dryers and TVs.
But Americans' buying plans remained at levels sufficient to keep consumer spending growing and the overall economy expanding, even as rising interest rates have left some worried about an imminent recession.