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- US consumer confidence rebounds in May after 5-month slide (foxbusiness.com)
Consumer Confidence Rebounds in May
After five consecutive months of decline, consumer confidence made a significant comeback in May, exceeding economists’ predictions. The Conference Board’s Consumer Confidence Index jumped 12.3 points to 98, well above the anticipated 87. This positive shift is attributed to the temporary truce in the US-China trade war, which saw both nations reduce tariffs.
While the rebound was already underway before the May 12th trade agreement, the deal further fueled the upward trend. Improved consumer expectations played a key role, with optimism rising across business conditions, employment prospects, and future income. Consumers also expressed a more positive view of current business conditions.
Despite this positive momentum, concerns linger. The report revealed a fifth consecutive month of weakening sentiment regarding job availability. Consumers continue to voice anxieties about tariffs inflating prices and negatively impacting the economy, although some expressed hope that trade agreements could stimulate economic activity.
Interestingly, consumer responses also indicated a mix of concern and optimism about inflation. While high prices remain a worry, some noted easing inflation and lower gas prices. Average inflation expectations over the next 12 months dipped slightly to 6.5% from April’s 7%.
The report also highlighted changes in consumer spending habits. Over a third of respondents reported saving money for future spending, while roughly a quarter indicated dipping into savings to cover current expenses or postponing major purchases.
The rebound in consumer confidence spanned all age groups, income levels, and political affiliations. However, the index’s six-month moving average remains down, reflecting the impact of previous declines.
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- US consumer confidence rebounds in May after 5-month slide (foxbusiness.com)