U.S. Consumer Confidence Surges Amid Trade Easing

U.S. consumer confidence rebounded sharply in May after five months of decline, as the Conference Board’s index rose by 12.3 points to 98. This surge was driven by the Trump administration's easing of aggressive tariff policies, pauses on new tariffs, and a major U.S.-China trade deal, which improved perceptions of the economy and labor market. The rebound was broad-based across age, income, and political groups, with strong optimism among Republicans, and increased plans for major purchases. Both present conditions and future expectations indices saw significant gains, though expectations remain below recession warning thresholds. Despite the positive momentum and a rally in the stock market, persistent concerns about inflation, tariffs, and job availability remain, with wealthier households saving more and less affluent ones dipping into savings or delaying purchases. Confidence has moved closer to historical norms, but uncertainty over economic conditions and trade policy persists.