Consumer Confidence Index (CCI) for May 2025

Consumer Confidence Index® (CCI) for this month (May, 2025) was released by The Conference Board® this morning:

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Predicted: 88.0

• Actual: 98.0

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Previous Month (revised): 85.7

• Change from Previous Month: 14.35% (+12.3 points)
  

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The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...'Consumer confidence improved in May after five consecutive months of decline,' said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board. 'The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards. The monthly improvement was largely driven by consumer expectations as all three components of the Expectations Index -- business conditions, employment prospects, and future income -- rose from their April lows. Consumers were less pessimistic about business conditions and job availability over the next six months and regained optimism about future income prospects. Consumers’ assessments of the present situation also improved. However, while consumers were more positive about current business conditions than last month, their appraisal of current job availability weakened for the fifth consecutive month.'

Guichard added: 'With the stock market continuing to recover in May, consumers’ outlook on stock prices improved, with 44% expecting stock prices to increase over the next 12 months (up from 37.6% in April) and 37.7% expecting stock prices to decline (down from 47.2% in April). This was one of the survey questions with the strongest improvement after the May 12 trade deal.'..."

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Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

• The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board® is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.

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CHART: Consumer Confidence Index (CCI)
MAY 2025 Update

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• Click here to view the full Conference Board report.

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3 Myths About Inflation Most People Still Believe

Think inflation doesn’t affect you? Think again.

Whether you're grabbing coffee, paying rent, or saving for your next trip, inflation quietly shapes your everyday decisions—and your future.

The problem? A lot of what we think we know about inflation is just plain wrong. And believing these myths can cost you more than a few extra bucks a month.

In this article, we’ll bust three of the most common inflation myths still floating around in 2025. You’ll get clear, simple truths and practical tips to help you make smarter financial moves—even if you’re just starting out.

Let’s set the record straight.

Myth #1: Inflation Means Prices Are Out of Control

Many people hear “inflation” and instantly think of skyrocketing prices and economic chaos. But the truth is, moderate inflation—typically around 2–3% annually—is both normal and expected in a healthy economy.

Prices do rise over time, but that doesn’t mean they’re out of control. In fact, controlled inflation encourages spending and investment, which fuels growth.

Example: If your morning coffee goes from $2.00 to $2.05 in a year, that’s inflation—not a crisis.

Bottom line: Inflation becomes a problem only when it’s too high or unpredictable. Most of the time, it’s simply part of the economic cycle.

Real-World Example: The Role of Tariffs
A clear example of price increases not caused by general inflation is when governments impose tariffs. For instance, the Trump-era tariffs on Chinese imports—and the potential new tariffs in 2025—directly raise prices on goods like electronics, clothing, and furniture.
These aren't signs of runaway inflation, but policy-driven price hikes. Understanding the difference can help you make more informed financial decisions.

Myth #2: Wages Always Keep Up With Inflation

It’s a common belief that as prices rise, so do wages—but that’s not always the case. In reality, wages often lag behind inflation, meaning your money loses purchasing power over time.

This is especially true during periods of high inflation when salaries stay the same but living costs rise. The result? You can afford less even if you’re earning the same amount.

Tip: Focus on boosting your income through raises, side hustles, or skill upgrades to stay ahead of rising costs.

Remember: Understanding the gap between nominal and real wages is key to protecting your financial well-being.

Myth #3: Inflation Only Hurts Consumers

While rising prices directly impact consumers, they’re not the only ones affected. Inflation also impacts savers, investors, and businesses in different ways.

For example, money sitting in a savings account loses value over time if the interest rate is lower than inflation. On the other hand, some businesses may raise prices and maintain profits, while others struggle with higher costs.

Tip: Protect yourself by investing in assets that historically outpace inflation—like index funds, real estate, or commodities.

Truth is: Inflation reshapes the entire economy—not just your grocery bill.

How to Stay Ahead of Inflation in 2025

Inflation may be unavoidable, but you can still protect your finances with smart habits. Here’s how to stay ahead in 2025:

• Budget with inflation in mind — adjust spending plans based on rising costs.

• Grow your income — negotiate raises or explore side hustles.

• Invest wisely — put money into assets that outpace inflation, like index funds or real estate.

• Avoid holding too much cash — uninvested savings lose value over time.

• Stay informed — track inflation trends using tools like CPI reports or trusted financial news.

Small steps today can make a big difference in your future purchasing power.

Conclusion

Understanding inflation is key to making smarter financial choices. By debunking these common inflation myths, you’ll be better prepared to manage your money, protect your savings, and invest with confidence in 2025 and beyond.

Don’t let misinformation hold you back—stay informed, think long-term, and take control of your financial future.

Written by Alex Carter, founder of Invicome, a blog focused on financial freedom and passive income for young adults. He shares practical tips on making money online, investing, and building long-term wealth.

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Consumer Confidence Index (CCI) for April 2025

Consumer Confidence Index® (CCI) for this month (April, 2025) was released by The Conference Board® this morning:

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Predicted: 88.0

• Actual: 86.0

================

Previous Month (revised): 93.9

• Change from Previous Month: 8.41% (-7.9 points)
  

================

The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...'Consumer confidence declined for a fifth consecutive month in April, falling to levels not seen since the onset of the COVID pandemic,' said
Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board. 'The decline was largely driven by consumers’ expectations.

The three expectation components -- business conditions, employment prospects, and future income -- all deteriorated sharply, reflecting pervasive pessimism about the future. Notably, the share of consumers expecting fewer jobs in the next six months (32.1%) was nearly as high as in April 2009, in the middle of the Great Recession.

In addition, expectations about future income prospects turned clearly negative for the first time in five years, suggesting that concerns about the economy have now spread to consumers worrying about their own personal situations. However, consumers’ views of the present have held up, containing the overall decline in the Index.'..."

================

Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

• The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board® is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.

================  

CHART: Consumer Confidence Index (CCI)
APRIL 2025 Update

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• Click here to view the full Conference Board report.

=========================================

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Consumer Confidence Index (CCI) for December 2024

Consumer Confidence Index® (CCI) for this month (December, 2024) was released by The Conference Board® this morning:

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Predicted: 112.0

• Actual: 104.7

================

Previous Month (revised): 112.8

• Change from Previous Month: -7.18% (-8.1 points)
  

================

The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...'The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years,' said Dana M. Peterson, Chief Economist at The Conference Board. 'While weaker consumer assessments of the present situation and expectations contributed to the decline, the expectations component saw the sharpest drop.

Consumer views of current labor market conditions continued to improve, consistent with recent jobs and unemployment data, but their assessment of business conditions weakened. Compared to last month, consumers in December were substantially less optimistic about future business conditions and incomes. Moreover, pessimism about future employment prospects returned after cautious optimism prevailed in October and November.'

Peterson added: 'Consumers became a bit less bullish about the stock market in December: 52.9% expected stock prices to increase over the year ahead, down from a record high of 57.2% in November. Also, 25% of consumers expected stock prices to decline, up from 21.7%. The share of consumers expecting higher interest rates over the next 12 months ticked up to 48.5% but remained near recent lows. The share expecting lower rates eased to 29.3% -- down from recent months but still quite high.'..."

================

Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

• The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.

================  

CHART: Consumer Confidence Index (CCI)
DECEMBER 2024 Update

========================================

• Click here to view the full Conference Board report.

=========================================

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Federal Reserve Report On The Financial Well-Being of American Households for 2015

A report on the decision-making and financial well-being of American households during 2015, from the Federal Reserve:

Click here for the transcript (PDF).

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