The Conference Board’s consumer confidence index rose sharply to 98 from April’s 85.7
Americans felt better about the economy in May after several months of concern. The Conference Board reported that its consumer confidence index jumped 12.3 points to 98 from April’s 85.7, ending five months of decline.
Expectations for income and jobs also improved, though still hinted at possible recession risks.
Last month’s consumer confidence index was also the board’s lowest point since May 2020.
What changed?
President Donald Trump’s pause on major tariffs—especially with China and the UK—helped ease fears.
Lower inflation and gas prices added to the relief. Job gains and unemployment rates at a low 4.2% further supported optimism.
While spending plans on homes and vacations have increased, economists warn that price hikes from existing tariffs could soon reignite concerns about inflation.