Consumer confidence saw a significant rebound in May, breaking a five-month streak of declines, according to new figures from The Conference Board.
The Consumer Confidence Index surged by 12.3 points to reach 98.0, up from 85.7 in April, and well above economists’ forecast of 87.1.
The Expectations Index, which reflects consumers’ outlook for the near future, jumped 17.4 points to 72.8, while the Present Situation Index, gauging views on current conditions, rose 4.8 points to 135.9.
“Confidence picked up in May after five straight months of decline,” said Stephanie Guichard, Senior Economist at The Conference Board. “We saw signs of a turnaround even before the May 12 U.S.-China trade agreement, but the deal appeared to accelerate the gains.”
Consumers’ expectations for business conditions, employment prospects, and income all improved. The percentage of people expecting higher income rose to 18% (up from 15.9%), while those anticipating more job opportunities increased to 19.2% from 13.9% the previous month.
Plans to make major purchases also rebounded, with more consumers indicating intentions to buy homes, cars, household appliances, and services.
Confidence in the stock market strengthened as well—44% of respondents now expect equities to rise over the next year, compared to 37.6% in April.
Although concerns about inflation and affordability persist, 12-month inflation expectations dipped to 6.5%. Notably, 19% of consumers reported accelerating purchases to avoid potential tariffs, a trend that was more common among higher-income households.
“The rebound in confidence was widespread,” The Conference Board noted, “with gains observed across all age groups, income brackets, and political affiliations, particularly among Republicans.”
Still, The Conference Board cautioned that on a six-month moving average, confidence remains below previous levels.
Guichard added that despite ongoing worries about affordability, May’s rebound was primarily driven by improving expectations, and the recovery in sentiment was broad-based.
