Consumer confidence in the United States improved more than expected this month, according to survey data released Tuesday, boosted by hopes of easing trade tensions after US President Donald Trump’s tariffs jolted the economy.
The Conference Board’s consumer confidence index jumped 12.3 points to 98.0 in May, up from 85.7 in April, when it fell to its lowest level since the onset of the Covid-19 pandemic.
“Consumer confidence improved in May after five consecutive months of decline,” said senior economist Stephanie Guichard of The Conference Board.
“The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards,” she added in a statement.
The figure was also notably higher than the 87.0 reading that a consensus forecast by Briefing.com anticipated.
But tariffs remain top-of-mind, the survey results showed.
Since returning to the presidency in January, Trump has slapped sweeping tariffs on most US trading partners, with China targeted by especially high levels.
But after talks between officials this month, the world’s two biggest economies agreed to drastically reduce tit-for-tat tariffs temporarily.
In May, all three components of the expectations index — business conditions, employment prospects, and future income — rose from lows in April, Guichard noted.
Consumers were less gloomy about business conditions and job availability over the next six months, regaining optimism about future income prospects, she added.
But their view of current job availability still weakened for a fifth straight month.
Consumers also continued to show concern about potential price hikes from tariffs, alongside other negative impacts on the economy.
Economists have warned that the levies could fuel inflation and bog down economic growth.
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