Consumer confidence rises in May after a prolonged five-month slide, boosted in part by a U.S.-China trade agreement and gains in the stock market. The Conference Board Consumer Confidence Index rose to 98 in May, up from previous lows, signaling renewed optimism among U.S. households. The rebound began before the May 12 trade truce but accelerated following the announcement, showing that global economic developments remain influential in shaping consumer sentiment.

Expectations Rise Despite Job Market Concerns

The surge in consumer sentiment was driven largely by gains in the Expectations Index, which jumped 17.4 points to 72.8. The Present Situation Index also climbed, increasing 4.8 points to 135.9. Analysts attribute the rise to improved financial market conditions, with the S&P 500 gaining more than 10% between the April and May survey cutoff dates.

Although overall confidence showed a positive shift, concerns about the labor market persisted. The survey revealed a continued weakening in consumers’ appraisal of current job availability—marking the fifth consecutive month of decline in that metric. While optimism has returned in some areas, the soft employment outlook could limit momentum in future months.

Consumer Confidence Rises On Boosted Expectations

In another sign of cautious optimism, more consumers indicated plans to purchase a home compared to April. However, this sentiment remains vulnerable to ongoing uncertainty around interest rate movements. Mortgage rate volatility has kept many prospective buyers on edge, and until rates stabilize, housing-related confidence may continue to fluctuate.

The consumer confidence rebound highlights the complex dynamics at play in the current economic landscape. Gains in equity markets and diplomatic developments appear to be bolstering perceptions of economic strength, even as labor market concerns and interest rate uncertainty temper broader enthusiasm.

Community Impact and Economic Outlook

For families in communities across the San Gabriel Valley—including El Monte, South El Monte, Baldwin Park, Rosemead, and Irwindale—changes in consumer confidence can influence spending habits, borrowing decisions, and economic engagement. A more optimistic public may lead to stronger retail activity and investment in housing and durable goods.

Local businesses and policymakers often look to the Consumer Confidence Index as an indicator of future economic behavior. A higher index suggests that consumers are more likely to spend, which can support growth in sectors like retail, housing, and services.

As households navigate shifting economic conditions, the latest confidence data offers a cautiously positive signal. If equity markets hold gains and international relations remain stable, consumer confidence could continue its recovery. Still, labor conditions and rate movements will be key factors to watch in the months ahead.