U.S. Consumer Confidence Rebounds Sharply in May Survey

The Conference Board's Consumer Confidence Index rose to 108.4 in May, up from 102.1 in April and significantly above the consensus estimate of 103.5. The reading is the highest since September 2025 and suggests that American consumers are growing more optimistic about both current economic conditions and the near-term outlook.

The Present Situation component — which measures how consumers feel about current business and labor market conditions — rose to 141.2 from 133.8, reflecting continued strength in the labor market. The Expectations component, which captures consumers' six-month outlook for income, business, and labor market conditions, rose to 87.6 from 79.7.

What Drives Consumer Confidence?

Consumer confidence is closely watched by economists because it tends to predict future spending behavior. When consumers feel good about their financial situations and job security, they spend more freely — which drives the consumer spending that accounts for approximately 70% of U.S. GDP. The May improvement suggests spending should remain resilient in the months ahead.