Chinese Trade Truce Boosts US Consumer Confidence

Consumer confidence in the United States saw a notable improvement in May, following a temporary easing in the trade conflict between Washington and Beijing. This rise ended a streak of five months of declining sentiment among American consumers.

The Conference Board, a global economic research organization, reported on Tuesday that its consumer confidence index jumped by 12.3 points to 98.0 in May, surpassing economists’ forecasts of a smaller rise to 87.0.

Roughly half of the survey responses were gathered after May 12, when the White House announced a 90-day truce that reduced tariffs on Chinese goods from 145% to 30%.

Stephanie Guichard, a senior economist at the Conference Board, explained that the rebound in confidence was already emerging before the trade announcement but accelerated afterwards. Despite the optimism, tariffs remain a significant concern for many U.S. households, who worry about rising prices and their broader economic impact.

While the trade truce provides temporary relief and hope, uncertainty lingers over the long-term consequences of tariffs and ongoing trade negotiations on the US economy.