US Consumer Confidence Surges 12 Points in May Amid Tariff Reduction

U.S. consumer confidence saw a significant rebound in May after five consecutive months of decline, largely driven by easing tariff tensions between the U.S. and China. The Conference Board's consumer confidence index rose 12.3 points to 98, the largest monthly gain in four years, surpassing economists' expectations. This improvement was broad-based across all age, income, and political groups, with consumers expressing less pessimism about business conditions, job availability, and future income prospects. The rebound gained momentum following the May 12 trade deal that temporarily slashed tariffs on Chinese imports, although concerns about tariffs and their impact on prices persist among consumers and retailers. Despite the optimism, some indicators, such as job availability assessments, showed mixed signals with a continued weakening trend. Overall, the recovery in confidence reflects a cautious optimism amid ongoing tariff-related economic uncertainties and a strong stock market performance.