U.S. Consumer Confidence Rises After Five Straight Months Of Declines

Americans’ views of the economy improved in May after five consecutive months of decline had pushed consumer confidence to its lowest level since the onset of the COVID-19 pandemic.

The share of consumers expecting a U.S. recession within the next 12 months also declined from April.

The recovery was largely driven by easing anxiety over the economic impact of President Donald Trump’s tariffs, Matt Ott reported for the Associated Press (AP).

The Conference Board reported Tuesday that its Consumer Confidence Index rose 12.3 points in May to 98, up from April’s reading of 85.7—its lowest since May 2020.

A measure of Americans’ short-term expectations for income, business conditions, and the job market jumped 17.4 points to 72.8, though it remained below 80, a level often associated with recession warnings.

The share of consumers expecting a U.S. recession within the next 12 months also declined from April.

Trump’s aggressive and often unpredictable policies—including sweeping import tariffs—have cast a shadow over the economic outlook and job market, raising fears of a looming recession.

However, recent pullbacks, pauses, and negotiations with some trading partners appear to have eased market and consumer concerns.

“The rebound was already visible before the May 12 U.S.-China trade deal but gained momentum afterwards,” said Stephanie Guichard, senior economist at The Conference Board.