Consumer confidence has surged by 12.3 points, reaching a reading of 98, according to the latest survey released by the Conference Board. It’s the first monthly increase in consumer confidence since last November. More importantly, it’s an early signal that the public is becoming more positive about the broader economy. The shocking data, released to the public on a Tuesday, blew away economist expectations that only called for an 88 reading.
The increase in consumer confidence from last month was largely the result of increased consumer expectations. Every part of the Expectations Index—business conditions, employment prospects and future income—made gains from April’s bottoms. This resurgent enthusiasm is a welcome sight contrasted with this time last month. At that time, consumer confidence was at an all-time low since the early pandemic days of Covid.
President Donald Trump’s sweeping policy changes and ongoing trade war had significantly impacted people’s attitudes toward the economy. With new momentum achieving breakthroughs in negotiations with other countries over trade — especially on sanitary and agricultural standards — there’s a renewed hope for consumers. The tide on sentiment Stephanie Guichard, senior economist with the Conference Board, says that this negative shift in sentiment is becoming widespread. This trend is becoming more pronounced.
“The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards,” – Stephanie Guichard
The Conference Board’s consumer survey indicates that consumers are beginning to feel more rosy. They are optimistic about business conditions in six months’ time as well as increasing employment. This sharp turnaround indicates that people are feeling more ready to spend, which is a great sign of future economic growth in the coming months.
Consumer confidence may be reaching new highs, marking a strong change in mood across the country. This stimulus arrives even after previous concern over economic overheating. If consumers are feeling more confident in their financial futures, so too will American businesses with more spending again.