Consumer Confidence Drops in May

.S. consumer confidence fell in May by the most since Hurricane Katrina last fall, the New York-based Conference Board said Tuesday.

The board’s index dropped to 103.2 from a four-year high of 109.8 last month that had originally been reported at 109.6, the group said in its monthly report.

The May level was above economists’ estimates of a decline to 100.9, Bloomberg reported.

The consumer confidence index is a predictor of consumer spending. When people are feeling less confident about the economy, they are less likely to spend money, which decreases demand for trucking services.

The present-situation index rose to 132.5 from 136.2. A gauge of consumer expectations for the next six months fell to 83.7, the lowest since October, from 92.3.

Every month the Conference Board surveys 5,000 households on general economic conditions, their employment prospects and spending plans.