Consumer confidence jumped 12.3 points this month, snapping a five-month slide, as Americans reported a more optimistic view of both current economic conditions and the outlook for the next six months, according to the Consumer Confidence Index released Tuesday.
The May surge coincides with the Trump administration’s push to finalize trade deals with China and other nations following last month’s sweeping tariff rollout. The rebound was broad-based—cutting across age groups, income levels, and political affiliations—with Republicans showing the sharpest gains, according to researchers at The Conference Board.
On May 12, American and Chinese officials announced a temporary truce in their escalating tariff war, sparked by President Trump’s April 2 “Liberation Day” tariff plan, which significantly hiked duties on Chinese imports.
Under the agreement, the U.S. reduced its tariff rate on Chinese goods from 145% to 30%, while Beijing slashed its tariffs on U.S. products from 125% to 10%. China also agreed to roll back several non-tariff retaliatory measures it had previously imposed, The Hill reported.
“The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards,” economist Stephanie Guichard said in a statement on the latest Consumer Confidence Index. “Consumers were less pessimistic about business conditions and job availability over the next six months and regained optimism about future income prospects. Consumers’ assessments of the present situation also improved.”
The preliminary results of the survey, reported Tuesday, were collected through May 19, with approximately half gathered after May 12.
The Expectations Index from the survey, which gauges perceptions about income, business, and job market conditions over the next six months, jumped by almost 17.5 points to reach 72.8. However, it still falls short of the 80-point benchmark usually associated with a lower likelihood of entering a recession, The Hill noted.
Analysts noted buyers “continued to express concerns about tariffs increasing prices and having negative impacts on the economy, but some also expressed hopes that the announced and future trade deals could support economic activity.”
The latest assessment is great news for President Donald Trump’s administration. It shows a noticeable uptick in home and vehicle buying plans, vacation intentions, and overall consumer spending—especially following the May 12 trade truce announcement. Planned purchases for big-ticket items like appliances and electronics also increased, along with spending on services across the board.
Nearly 22% of consumers now say business conditions are “good,” up from 19.2% in April. Meanwhile, 19.7% expect conditions to improve over the next six months, a jump from just 15.9% the previous month, The Hill reported.
