WASHINGTON, D.C. – Consumer sentiment in the United States saw a notable rebound in May 2025, breaking a five-month streak of declines. According to new data, the Conference Board Consumer Confidence Index saw its most significant monthly increase in four years.
The Conference Board Consumer Confidence Index increased by 12.3 points in May to 98.0, up from 85.7 in April. The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — surged 17.4 points to 72.8. The Present Situation Index — based on consumers’ assessment of current business and labor market conditions — rose 4.8 points to 135.9.
This boost comes in the wake of a recent agreement between the U.S. and China to temporarily ease trade tensions. On May 12, both nations announced a 90-day rollback of tariffs. The U.S. reduced duties on Chinese imports, while China lowered its tariffs on American goods. The temporary agreement, framed by officials as a pause for continued negotiations, appears to have calmed market anxieties and buoyed consumer outlook.
The improvement in sentiment was broad-based, spanning across different age groups, income levels, and political affiliations. Among the most optimistic were Republican-leaning respondents, who reported a more favorable view of the economy.
Consumers expressed growing confidence in business conditions, income prospects, and job availability. However, the Expectations Index—another key measure of outlook—remained below 80. This is typically considered a signal of underlying recession fears, suggesting that uncertainty has not fully dissipated.
Despite the overall positive trend, the labor market outlook continued to soften, marking the fifth month of decline. Additionally, inflation expectations remain high, with many consumers anticipating prices to rise by about 6.5% over the next year.
While the rebound in confidence offers a positive sign for the economy, analysts caution that the temporary nature of the tariff truce could limit its long-term impact. The coming months will be critical in determining whether optimism holds or begins to fade again.
