Consumer confidence in the U.S. increases in May, but remains at a subdued level - Confidence among American consumers increments in May, although it persists at a low level
US consumer confidence increased slightly in May, marking a rebound from a five-month decline that reached its lowest point since the onset of the COVID-19 pandemic. However, the level of confidence remains significantly below the average of the past four years.
The Conference Board, an economic research organization, reported the rise in consumer confidence, attributing some of the improvement to the 90-day tariff truce agreed upon by US and Chinese government officials in Geneva during mid-May. consumer sentiment strengthened further after the agreement.
According to the Conference Board's survey, consumers expressed more optimistic views about their income, business conditions, and employment prospects for the next six months compared to April. Nevertheless, concerns about President Donald Trump's trade policy persisted as the primary worry for consumers.
Last Friday, Trump threatened to impose 50% tariffs on European Union imports as early as June, but later postponed the decision until July 9 following a telephone conversation with European Commission President Ursula von der Leyen. Trump had initially imposed high additional tariffs on various countries in early April, with base tariffs of 10% for 90 days and tariffs of 25% on automobiles, steel, and aluminum products.
Although the improvement in consumer confidence is noteworthy, overall sentiment remains cautious due to ongoing economic uncertainties and concerns about future trade policy developments. The COVID-19 pandemic has created a substantial impact on consumer confidence, with widespread economic anxiety caused by uncertainty and health concerns peaking during the pandemic's height.
[Source: The Conference Board, Bloomberg, Reuters]
- The slight increase in US consumer confidence in May, despite remaining at a low level, can be partially attributed to the 90-day tariff truce between the US and China, as reported by The Conference Board.
- In the realm of business, politics, general-news, and finance, concerns about President Donald Trump's trade policy and potential tariffs continue to persist as the primary worry for consumers, impacting the overall sentiment and relaxation about the future.
