U.S. Consumer Confidence Index Sees Largest Monthly Gain in Four Years Amid Tariff Negotiations
The U.S. Consumer Confidence Index rose 12.3 points in May, reflecting improved economic sentiment following tariff negotiations with China and the EU.
Overview
The Conference Board reported a 12.3-point increase in the U.S. Consumer Confidence Index for May, reaching 98.0, the largest monthly gain in four years. This rise follows five months of declines, driven by a truce in the U.S.-China trade war and a delay of tariffs on the EU. Despite lingering concerns over tariffs and inflation, the rebound indicates growing optimism among consumers, particularly regarding major purchases. The expectations index surged 17.4 points, although it remains below the recession warning threshold. Confidence is rising across demographics, but concerns about job availability persist.
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FAQ
The rise in consumer confidence was driven by a truce in the U.S.-China trade war and a delay of tariffs on the EU, which improved economic sentiment despite lingering concerns over tariffs and inflation.
The Consumer Confidence Index is calculated by surveying households and asking five questions about present and future economic conditions. The index values for these questions are averaged to form the overall Consumer Confidence Index.
The surge in the expectations index indicates growing optimism among consumers regarding future economic conditions, although it remains below the recession warning threshold.
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