U.S. Consumer Confidence Index Rises in May

According to Odaily, the U.S. Consumer Confidence Index for May increased to 135.9, driven by a significant rise in the expectations index, which surged 17.4 points to 72.8. Despite this improvement, the index remains below the threshold of 80, which often signals an impending economic recession. Stephanie Guichard, a senior economist at the Conference Board, noted that consumer confidence improved in May after five consecutive months of decline. This rebound began to show signs before the U.S.-China trade agreement was reached on May 12, and the momentum has since strengthened. The monthly improvement was primarily fueled by consumer expectations, as all three components of the expectations index—business conditions, employment prospects, and future income—recovered from April's lows. Consumers have become less pessimistic about business conditions and job opportunities over the next six months and have regained optimism about future income prospects. Additionally, consumers' assessment of the current situation has also improved. Guichard added that as the stock market continued to rise in May, consumers' outlook on stock prices improved. About 44% of consumers expect stock prices to increase over the next 12 months, up from 37.6% in April, while 37.7% anticipate a decline, down from 47.2% in April.