US Consumer Confidence Index rebounds in May and US Dollar Index holds steady near the 99.40 level

In May, US consumer sentiment staged a recovery, with the Conference Board’s Consumer Confidence Index rising to 98.0 from a revised 86.0 (previously 85.7), bouncing back from the prior month’s decline.

The upswing in consumer morale was fueled by evolving views on current business and labor market conditions. The Present Situation Index climbed 4.8 points to 135.9. More significantly, the Expectations Index, which tracks short-term outlooks for income, business, and employment, jumped 17.4 points to 72.8, though it remains below the 80-point threshold typically tied to recession concerns.

A senior economist at The Conference Board’s Global Indicators division noted: “Confidence began to recover before the US-China trade deal on May 12 but gained further momentum afterward. The monthly increase was primarily driven by consumer expectations, with all three components—business conditions, job prospects, and future income—improving from their April lows. Consumers were less pessimistic about business and employment prospects over the next six months and expressed greater optimism about income growth. However, while perceptions of current business conditions improved, views on current job availability weakened for the fifth consecutive month.”

Market Reaction

The US Dollar Index (DXY) remains supported around the 99.40 zone, staying resilient despite a slight decline in US yields across various maturities.