Energy shocks linked to global fluctuations have forced consumers to modify their daily spending habits. A new survey published on May 22 by the University of Michigan (United States) reveals that the U.S. consumer confidence index has fallen to its lowest level in more than 70 years.
This index was already weak at the start of the year, but it plummeted after the outbreak of the conflict in Iran in late February. More precisely, in May, the consumer confidence index fell to 44.8 points, down from 49.8 points in April.
Moreover, consumer price inflation reached 3.8% in April, while the growth of average wages was only 3.6% over the same period. This is the first time in two years that prices in the United States have risen faster than wages, putting considerable pressure on consumers. It was noted that, with gasoline prices persistently at their highest since 2022, Americans are increasingly concerned about the cost of living.
Energy prices surge
In Europe, tensions linked to the Iranian conflict have also driven up energy prices, prompting consumers to cut back their spending, whether it is a dessert at a regular lunch or their daily expenditures.
Energy prices have surged across the euro area, reducing households’ incomes and fueling inflation fears. In this context, consumers in many European countries are adapting by spending more prudently, maintaining their habits, and enjoying life in familiar places, despite tighter budgets.
In Asia, experts have observed a surprising trend: many Chinese households are accumulating liquidity at a frantic pace. By 2025, the total household deposits are expected to represent about 118% of GDP, thus forming a substantial reserve. Bank deposits have exploded, interest rates are near their lowest level, and yet households remain discreet.
This development indicates that consumer dynamics, though highly anticipated by international companies, are clearly slowing. Structural challenges weigh on China’s economic prospects. Slower productivity growth and an aging population are expected to continue to impede long-term growth.
Rising commodity prices
According to financial sources, the rise in commodity prices, faster than wage growth, reduces workers’ purchasing power in many economies around the world.
A recent report from the International Monetary Fund (IMF) indicates that the United States is currently facing difficulties likely to affect its growth prospects in the coming years. Furthermore, in China, the World Bank confirms that domestic consumption, considered a key engine of global economic growth, shows signs of a recovery, albeit slow.
According to a United Nations report on the state and prospects of the global economy mid-2026, shocks in energy markets generate greater macroeconomic pressures. The rise in costs erodes households’ purchasing power and reduces corporate profit margins.
