U.S. consumer confidence improves in May despite gas price pressure

By AI, Created 5:02 PM UTC, May 18, 2026, /AGP/ – Prosper Insights & Analytics says U.S. consumers stabilized in May after an April pullback tied to the Iran-driven gas price shock. Confidence, mood and spending plans all improved from April, suggesting households are still spending but more selectively as fuel costs stay high.

Why it matters: - The latest read suggests the gas-price shock is hurting households, but not enough to trigger a broad consumer shutdown. - Investors, economists and brand leaders are watching for signs of whether demand weakens further or stabilizes as consumers adapt. - Spending plans remained above year-ago levels, which points to continued demand even under pressure.

What happened: - Prosper Insights & Analytics said its May survey showed U.S. consumer confidence rose to 39.9% from 38.4% in April. - The Consumer Mood Index increased to 99.0 in May from 98.5 in April. - The 90-day Consumer Spending Forecast held at 3.1% above April 2025 levels. - Phil Rist, EVP Strategy at Prosper Insights & Analytics, said May data suggest the consumer is stabilizing rather than spiraling.

The details: - Prosper’s trend data show a sharp deterioration after the March shock tied to the Iran war, followed by a broader pullback in April and stabilization in May. - In March 2026, confidence stood at 42.2%, mood at 99.7 and the 90-day spending forecast at 84.96. - In April, confidence fell to 38.4%, mood dropped to 98.5 and the spending forecast declined to 83.18. - In May, confidence rebounded to 39.9%, mood improved to 99.0 and spending expectations stayed below March levels but remained constructive. - Prosper’s Gas Prices Impacting Purchases measure rose from 63.9 in March to 71.1 in April and 71.8 in May. - The gas-price measure suggests fuel costs continue to shape household decisions. - Prosper said consumers are beginning to absorb the shock rather than retreat further. - Prosper said its survey samples 7,500 to 8,000 U.S. adults each month. - Prosper said its dataset spans 23 years and supports retail, financial services, investment and macroeconomic research. - Prosper said its models are used to forecast consumer demand, public-company revenues and key macroeconomic indicators.

Between the lines: - The April drop looks like an adjustment period, not clear evidence of a broad consumer collapse. - The data suggest households are becoming more selective and redirecting spending toward categories that offer strong value, utility and convenience. - The consumer story looks more uneven than weak, with pressure still present but behavior adapting.

What’s next: - Prosper said consumers are likely to keep adjusting to elevated fuel prices rather than suddenly pull back across the board. - Wall Street and corporate teams will likely watch whether confidence and spending plans keep improving if gas prices remain high. - More information is available from Prosper Insights & Analytics at ProsperInsights.com and via email at info@goProsper.com.