US Consumer Confidence Surges 12 Points in May Amid Trade Deal Optimism

In May, U.S. consumer confidence experienced its largest monthly increase in over four years, driven largely by optimism following significant trade developments. Consumer confidence surged to 98, surpassing forecasts, with improvements seen across age groups, income levels, and political affiliations. This rise was fueled by a major U.S.-China trade agreement that temporarily reduced tariffs and a trade deal with the U.K., alongside tariff pauses for other countries, which helped ease economic concerns and boost expectations for income, business conditions, and job availability. Despite the gains, the Expectations Index remained below the 80-point threshold that signals recession risk, indicating cautious optimism among consumers. Analysts noted that while confidence in business conditions improved, concerns about tariffs increasing prices persist. The overall boost in consumer sentiment reflects renewed economic optimism and potential for improved global trade relations under the Trump administration's policies.