Americans’ views of the economy improved in May after five straight months of declines sent consumer confidence to the lowest level since the onset of the COVID-19 pandemic, largely driven by anxiety over the impact of President Donald Trump’s tariffs.
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.
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 proportion of consumers surveyed saying they think a U.S. recession is coming in the next 12 months also declined from April.
Trump’s aggressive and unpredictable policies—including massive import taxes—have clouded the outlook for the economy as well as the job market and raised fears that the American economy is headed toward recession.
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