After five straight months of erosion, U.S. consumer confidence posted a strong rebound in May, fueled by a recovering stock market, hopes tied to easing U.S.-China trade tensions, and signs of moderating inflation—yet many consumers remain cautious and are increasing savings.
The Conference Board’s Consumer Confidence Index rose sharply by 12.3 points to 98 in May, recovering from April’s 13-year low of 85.7.
This is the largest monthly jump since July 2021. The Expectations Index, which tracks consumers’ views on business, employment and income six months ahead, climbed 17.4 points to 72.8. Although the share of consumers anticipating a recession fell, the Expectations Index’s sub-80 level keeps the recession risk radar flashing for now.
Stephanie Guichard, senior economist at The Conference Board, said the rebound gained traction after the May 12 U.S.-China tariff pause, with notable gains across all components of consumer expectations.
“Consumers …