It’s been awhile, but Americans finally showed a little confidence in the U.S. economy.
After five months of decline, Americans’ views of the economy improved in May. The negative streak had left consumer confidence at its lowest level since the Covid pandemic hit the U.S. in March 2020.
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, according to a report from The Associated Press.
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 AP reported.
The proportion of consumers surveyed saying they think a U.S. recession is coming in the next 12 months also dropped from April.
“The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards,” said Stephanie Guichard, senior economist at The Conference Board, according to the AP.
The Conference Board said the rebound in confidence this month was broad-based across all ages and income groups.
The Labor Department earlier this month reported that U.S. employers added a surprising 177,000 jobs in April and the unemployment rate remained at a low 4.2% as the job market showed resilience amid Trump’s trade wars.
