Consumer confidence, which helps measure economic growth, spiked by more than 12 points in May, far outpacing experts’ predictions as Americans grow optimistic about President Donald Trump’s potential trade deals.

A survey released Tuesday showed the Conference Board’s Consumer Confidence Index standing at 98.0, which was up 12.3 points from April and much higher than the Dow Jones estimate of 86.0. The surge ended five straight months of declines in consumer confidence.

Even before President Trump agreed to a 90-day truce with China on May 12, which significantly reduced tariffs, consumer confidence was already rising, according to Stephanie Guichard, the Conference Board’s senior economist for global indicators.

“The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards,” Guichard said.

The May spike was celebrated by the White House with Communications Director Steven Cheung, crediting “THE TRUMP EFFECT!”

THE TRUMP EFFECT!

Consumer confidence rose 12.3 points this month to a reading of 98.

That’s higher than economists’ expectations for a reading of 88. https://t.co/yTJndbONkB

— Steven Cheung (@StevenCheung47) May 27, 2025

Along with consumer confidence spiking, the Present Situation Index — which is “based on consumers’ assessment of current business and labor market conditions” — was up 4.8 points. The Expectations Index, which looks at consumers’ short-term economic outlook, also jumped “17.4 points to 72.8,” but remains under the threshold of 80, which the U.S. Consumer Conference Board said “typically signals a recession ahead.”

“Consumers were less pessimistic about business conditions and job availability over the next six months and regained optimism about future income prospects. Consumers’ assessments of the present situation also improved,” Guichard added. “However, while consumers were more positive about current business conditions than last month, their appraisal of current job availability weakened for the fifth consecutive month.”

The positive consumer confidence report for the U.S. economy comes after inflation hit its lowest point in over four years in April.

Trump announced his first trade deal with the United Kingdom earlier this month and is continuing trade negotiations with China and the European Union. The president said on Sunday that he will delay 50% tariffs on the European Union after a phone call with European Commission President Ursula von der Leyen.

The Trump administration promises that more trade deals are currently in the works with Japan and South Korea, making significant headway.

President Donald Trump said on Monday that he was pondering shifting $3 billion in federal grants away from Harvard University to trade schools nationwide. 

Trump’s comments come as his administration has been engaged in a weeks-long battle with Harvard over federal funding and admission of foreign students. The Trump administration has accused Harvard of violating federal civil rights law with its diversity, equity, and inclusion (DEI) policies and handling of anti-Israel protests on campus.

“I am considering taking Three Billion Dollars of Grant Money away from a very antisemitic Harvard, and giving it to TRADE SCHOOLS all across our land,” Trump posted on Truth Social on Monday. “What a great investment that would be for the USA, and so badly needed!!!”

In another post on Monday, Trump said that he was still waiting for Harvard to turn over its lists of foreign students attending the university, alluding to a move last week by his Department of Homeland Security (DHS) to block the school from admitting any more international students by revoking its Student and Exchange Visitor Program certification. 

“We are still waiting for the Foreign Student Lists from Harvard so that we can determine, after a ridiculous expenditure of BILLIONS OF DOLLARS, how many radicalized lunatics, troublemakers all, should not be let back into our Country. Harvard is very slow in the presentation of these documents, and probably for good reason! The best thing Harvard has going for it is that they have shopped around and found the absolute best Judge (for them!) – But have no fear, the Government will, in the end, WIN,” Trump wrote. 

Harvard filed a lawsuit on Friday challenging DHS’s revocation of Harvard’s capacity to enroll students from abroad, accusing the Trump administration of committing a “blatant violation of the First Amendment, the Due Process Clause, and the Administrative Procedure Act.” 

U.S. District Judge Allison Burroughs, an Obama appointee, blocked the freeze on foreign students on Friday while litigation on the case plays out. 

On Tuesday, the New York Times reported that the Trump administration plans to cancel another $100 million in federal contracts with Harvard after previously freezing more than $3 billion in federal funds. 

“Going forward, we also encourage your agency to seek alternative vendors for future services where you had previously considered Harvard,” the General Services Administration reportedly wrote in a draft letter to federal agencies. 

The letter instructs federal agencies to respond by June 6 with updates on cancelled contracts with Harvard or request temporary exceptions if the contract is essential and an alternative needs to be found.