Tuesday's report is disappointing for retailers, which have seen sales slow in May amid cooler temperatures. Economists closely monitor consumer confidence because consumer spending accounts for two thirds of all U.S. economic activity. While shoppers have remained resilient in the face of higher gasoline prices, which have been hovering around $3 per gallon, Tuesday's report may confirm analysts' fears that consumers have reached a tipping point.
According to a poll of 7,000 consumers conducted for the National Retail Federation by research firm BIGresearch LLC in early May, 76 percent believe fluctuating gas prices have affected their spending habits. That's up from 67.2 percent a year ago.
Job growth has been solid, but shoppers are struggling with big economic challenges, from higher inflation to rising interest rates and a cooling housing market.
In a worrisome report issued last week by the Federa
