US consumer confidence rebounded sharply in May 2025, with The Conference Board (TCB) Consumer Confidence Index rising to 98.0 from 85.7 in April. The 12.3-point surge was supported by improvements in both present conditions and future expectations. The Expectations Index rose significantly to 72.8, though it remains below the recession-warning threshold of 80.
US consumer confidence jumped in May 2025, with the Index rising to 98.0 from 85.7.
The Present Situation Index climbed to 135.9, and the Expectations Index rose to 72.8.
Views on business, jobs, and income improved, while inflation fears eased.
Tariffs, affordability, and savings behaviour remained key concerns, though recession fears declined.
The Present Situation Index climbed to 135.9. In May, 21.9 per cent of consumers said conditions were ‘good,’ up from 19.2 per cent in April, while those calling them ‘bad’ declined to 14.0 per cent from 16.3 per cent, the TCB said in a release.
However, views of the labour market were mixed: 31.8 per cent said jobs were ‘plentiful’ (up from 31.2 per cent), but 18.6 per cent said jobs were ‘hard to get’ (up from 17.5 per cent).
The Expectations Index surged to 72.8, though it remains below the 80 threshold. Expectations for business conditions six months ahead improved, with 19.7 per cent anticipating improvement (up from 15.9 per cent in April), and 26.7 per cent expecting deterioration (down from 34.9 per cent). Labour market sentiment also brightened: 19.2 per cent of consumers foresaw more jobs (up from 13.9 per cent), while 26.6 per cent expected fewer (down from 32.4 per cent).
Consumers’ income expectations turned notably positive. The share expecting higher income rose to 18.0 per cent from 15.9 per cent, while those anticipating a decline fell to 13.8 per cent from 17.7 per cent.
Tariffs, inflation, and prices remained top concerns. However, sentiment improved following the May 12 announcement of a pause on some tariffs on Chinese imports. Consumers expressed hope that trade developments could support economic growth. Inflation concerns eased slightly, with 12-month expectations dipping to 6.5 per cent from April’s 7 per cent.
A growing share of consumers reported setting aside savings, although many—particularly in lower-income groups—had to draw from savings or delay big-ticket purchases.
Consumers remain more anxious about affordability than job security. Nearly half expressed concern about affording necessities and discretionary items, compared to less than a quarter worried about job loss.
The share of consumers expecting a recession in the next year also declined, indicating growing optimism despite economic headwinds.
Fibre2Fashion News Desk (HU)
