Consumer confidence in the United States improved significantly in May following a truce in the ongoing trade war between Washington and Beijing. This marks a positive turn after five consecutive months of declining sentiment.
According to Reuters, the Conference Board, a global economic research group, reported on Tuesday that its consumer confidence index rose by 12.3 points to reach 98.0 in May. This figure exceeded economists’ expectations, who had predicted a more modest increase to 87.0.
Reuters added that about half of the survey responses were collected after May 12, when the White House announced a temporary deal to reduce tariffs on Chinese imports from 145 per cent to 30 per cent for 90 days.
A senior economist at the Conference Board, Stephanie Guichard, noted that the rebound in consumer confidence was already taking shape before the trade deal announcement but gained further momentum afterwards. She added that despite the improvement, tariffs remain a key concern for many U.S. households, as consumers worry about rising prices and the potential impact on the broader economy.
The trade truce offers temporary relief and optimism among American consumers, but uncertainty remains over the long-term effects of tariffs and trade negotiations on the U.S. economy.
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