June 22, 2025
WASHINGTON (AP) — Americans’ views of the economy improved in May after five straight months of declines.
The Conference Board said Tuesday that its consumer confidence index rose 12.3 points in May to 98, up from April’s 85.7, its lowest reading since May 2020.
A measure of Americans’ short-term expectations for their income, business conditions, and the job market jumped 17.4 points to 72.8, but remained below 80, which can signal a recession ahead.
The proportion of consumers surveyed who say they think a U.S. recession is coming in the next 12 months also declined from April.
The Conference Board said the rebound in confidence this month was broad-based across all ages and income groups.
Consumers’ assessments of the present economic situation also improved, with the exception of their view on job availability, which weakened for the fifth straight month despite another strong U.S. jobs report.
However, less than 25% of respondents said they were worried about losing their jobs, compared with the 50% of respondents who said they were concerned about not being able to buy the things they need or want.
The Labor Department earlier this month reported that U.S. employers added a surprising 177,000 jobs in April and the unemployment rate remained at a low 4.2%.
Write-in responses to the survey showed that tariffs are still consumers’ biggest concern. Inflation is also still weighing on their minds, though some noted that inflation seemed to be easing, along with gas prices.
Earlier in May, the Commerce Department reported that consumer prices rose just 2.3% in March from a year earlier, down from 2.7% in February. Excluding the volatile food and energy categories, core prices rose 2.6% compared with a year ago, below February’s 3%. Economists track core prices because they typically provide a better read on where inflation is headed.
Gas prices have hovered around $3.17 per gallon this month, down from $3.59 a year ago, but up a few pennies from April.
The Board's survey Tuesday also showed that Americans' plans to spend on homes, cars, and vacations also increased from April.
