U.S. Consumer Confidence Rises in May Amidst Suspension of Tariffs on China
Consumer confidence in the United States increased significantly in May, reaching 98 points, following a pause in tariffs imposed on Chinese goods.
Consumer confidence in the United States saw a notable resurgence in May 2025, as reported by the professional association Conference Board on May 27. The confidence index rose to 98 points, marking an increase of 12.3 points from the previous month, after experiencing five consecutive months of decline.
This rebound is attributed to heightened optimism regarding both the current and future economic situations.
Analysts had anticipated a more modest increase, predicting the index would settle at around 87 points for May according to consensus estimates compiled by briefing.com.
Stephanie Guichard, an economist with the Conference Board, noted that the upward trend had been observable prior to the tariff agreement reached on May 12 between the United States and China, but it gained momentum following the announcement.
The rise in confidence is reflected across all three components of the index.
Sub-indices related to business conditions, employment, and household income have all shown improvement, indicating that American consumers are optimistic about economic prospects in the coming six months.
Despite this increase in the confidence index, it remains significantly below the averages recorded over the preceding four years, particularly in the wake of the economic disruptions caused by the COVID-19 pandemic.
In related economic updates, the exchange rate of the U.S. dollar as of May 27, 2025, was reported at ¢510.92 for sale and ¢504.02 for purchase, according to the Central Bank of Costa Rica.
This rebound is attributed to heightened optimism regarding both the current and future economic situations.
Analysts had anticipated a more modest increase, predicting the index would settle at around 87 points for May according to consensus estimates compiled by briefing.com.
Stephanie Guichard, an economist with the Conference Board, noted that the upward trend had been observable prior to the tariff agreement reached on May 12 between the United States and China, but it gained momentum following the announcement.
The rise in confidence is reflected across all three components of the index.
Sub-indices related to business conditions, employment, and household income have all shown improvement, indicating that American consumers are optimistic about economic prospects in the coming six months.
Despite this increase in the confidence index, it remains significantly below the averages recorded over the preceding four years, particularly in the wake of the economic disruptions caused by the COVID-19 pandemic.
In related economic updates, the exchange rate of the U.S. dollar as of May 27, 2025, was reported at ¢510.92 for sale and ¢504.02 for purchase, according to the Central Bank of Costa Rica.
