New York: American consumer confidence saw a notable rebound in May following five months of consistent decline, according to a new report by the Conference Board.

The improvement comes amid signs of easing anxiety surrounding President Donald Trump’s aggressive trade policies.

The Conference Board’s consumer confidence index rose by 12.3 points to 98 in May, up from April’s reading of 85.7 — the lowest since the COVID-19 pandemic began in 2020.

A separate measure assessing short-term expectations regarding income, business conditions and the labour market rose sharply by 17.4 points to 72.8. However, it remained below the threshold of 80, a level often considered a warning of potential recession.

The percentage of respondents who said they expect a US recession within the next year also fell, indicating a modest return of optimism.

Much of the anxiety in previous months was attributed to President Trump’s unpredictable tariff strategy, including the imposition of steep import taxes. However, his recent moves to ease tensions — including a 90-day pause on the 145% tariff on Chinese goods and deals with the UK and EU — appear to have calmed public sentiment.

Stephanie Guichard, senior economist at The Conference Board, noted that signs of recovery were visible even before the 12 May US-China trade deal but accelerated after the agreement.

Over the recent Memorial Day weekend, Trump and EU leaders also announced a pause on the president’s proposed 50% tariffs on EU imports until July, although this occurred after the survey closed on 19 May.

The rebound in confidence was broad-based, with gains seen across age and income demographics. However, consumers’ views on job availability continued to weaken, marking the fifth straight month of decline in that measure.

Despite this, US job growth remains strong. The Labour Department reported earlier this month that employers added 177,000 jobs in April, keeping the unemployment rate steady at 4.2%.