U.S. Consumer Confidence Rebounds Amidst Trade War Truce

U.S. consumer confidence saw a notable rise in May after a deal between the U.S. and China eased trade tensions. Despite concerns over price increases due to tariffs, the Conference Board's index jumped significantly, surpassing economists' expectations.

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.)