U.S. Consumer Confidence Rebounds Amidst Trade War Truce

In May, U.S. consumer confidence experienced a significant improvement, breaking a five-month streak of decline following a temporary ceasefire in the trade dispute between Washington and Beijing. The Conference Board reported a 12.3 point rise in its consumer confidence index, lifting it to 98.0, a substantial leap from the projected 87.0 by economists surveyed by Reuters.

Data collection revealed that nearly half of the survey responses came after May 12, when the White House declared a temporary reduction in tariffs on Chinese imports. This adjustment saw duties slashed to 30% from a former 145% for 90 days. 'The boost in confidence was noticeable even before the May 12 trade deal but gathered strength subsequently,' commented Stephanie Guichard, a senior economist at the Conference Board.

Despite the uptick, survey feedback indicated ongoing consumer concerns regarding tariffs and their potential impact on prices and the broader economy. Tariffs remain a key issue influencing economic sentiment among households.

(With inputs from agencies.)