Americans’ views of the economy improved in May, according to the Associated Press. The uptick followed five straight months of declines that sent consumer confidence to its lowest level since the onset of the COVID-19 pandemic, largely driven by anxiety over the impact of President Donald Trump’s tariffs.
The Conference Board said Tuesday that its consumer confidence index rose 12.3 points in May to 98, up from April’s 85.7, its lowest reading since May 2020. A measure of Americans’ short-term expectations for their income, business conditions and the job market jumped 17.4 points to 72.8, but remained below 80, which can signal a recession ahead.
The proportion of consumers surveyed saying they think a U.S. recession is coming in the next 12 months also declined from April. The Conference Board said the rebound in confidence this month was broad-based across all ages and income groups.
Consumers’ assessments of the present economic situation also improved, with the exception of their view on job availability, which weakened for the fifth straight month despite another strong U.S. jobs report.
However, less than 25% of respondents said they were worried about losing their jobs, compared with the 50% of respondents who said they were concerned about not being able to buy the things they need or want.
The Board’s survey Tuesday also showed that Americans’ plans to spend on homes, cars and vacations also increased from April, with significant gains coming after the May 12 China tariff pause.
