NEW YORK: US consumer confidence showed signs of recovery in May, as indicated by a recent survey conducted by The Conference Board. The Consumer Confidence Index rose by 12.3 points to 98.0, up from 85.7 in April, marking an end to five months of decline.
According to Kuwait News Agency, the survey highlighted an increase in the Present Situation Index, which evaluates current business and labor market conditions. This index rose 4.8 points to 135.9. Meanwhile, the Expectations Index, which reflects consumers' short-term outlook for income, business, and labor market conditions, jumped 17.4 points to 72.8. Despite this increase, it remained below the critical 80-point threshold that often signals a potential recession.
The survey noted that about half of the responses were collected following the May 12 announcement of a pause on some tariffs on imports from China. Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board, remarked that consumer confidence had begun to improve even before the trade deal announcement and gained further momentum afterward. The improvement was largely driven by an uptick in consumer expectations, with better outlooks on business conditions, employment prospects, and future income.
Consumers' views on the present situation also showed improvement, although their assessment of current job availability continued to weaken for the fifth consecutive month. The rebound in confidence was observed across all age and income groups and was consistent across political affiliations, with Republicans experiencing the most significant increase in confidence.