U.S. Consumer Confidence Ticks Upward in May as Inflation Pressures Ease

New Survey Data from Prosper Insights & Analytics Signals Growing Optimism Amid Shifts in Spending Behavior.

WORTHINGTON, OH, UNITED STATES, May 27, 2025 /EINPresswire.com/ -- Fresh data from Prosper Insights & Analytics reveals a subtle but significant rebound in U.S. consumer sentiment this May, with indicators pointing to reduced inflation concerns and a cautiously improving economic outlook. According to the firm’s latest consumer survey of over 8,000 U.S. adults aged 18 and older, confidence in the economy rose to 39.0% in May, up from 37.7% in April. The Consumer Mood Index also climbed, reaching 103.0 — its highest level in several months — reflecting a notable uplift in how Americans feel about their current and near-future financial prospects.

Price Pressures Easing.
The most significant shift came in consumer perceptions of inflation. The share of adults reporting price increases across core essentials — including groceries and gasoline — fell across every tracked category. Price concern for meat and poultry dropped from 63.4% to 59.9%, while gasoline price pressure dipped from 44.8% to just 39.2%.

"Consumers are telling us they’re feeling the relief," said Phil Rist, EVP-Strategic Initiatives at Prosper Insights & Analytics. "Even a modest drop in perceived inflation is a signal that wallets might be opening wider again — a key insight for retailers, brands, and policymakers."

Lifestyle Spending Set for Rebound?
While essential categories saw relief, there was a notable uptick in price sensitivity around apparel and accessories, which rose from 29.9% to 31.8%. This shift may reflect increased consumer attention to discretionary spending, a trend that often precedes a broader spending rebound. Additionally, fewer Americans reported a drop in their standard of living in May (31.0%, down from 33.0%), underscoring a subtle but meaningful improvement in household resilience.

Strategic Implications for Businesses.
As inflation worries fade and mood metrics rise, brands are advised to:
- Pivot messaging from economic caution to value-driven and experience-rich engagement.
- Leverage rising confidence to reinvigorate discretionary spending campaigns.
- Monitor regional and demographic nuances to tailor offers to emerging pockets of optimism.

About the Survey:
The Prosper Monthly Consumer Survey is one of the longest-running continuous datasets in the U.S., capturing real-time insights from adults aged 18 and older. The May 2025 survey of 8,225, US adults was conducted May 1st – May 7th 2025.

About Prosper Insights & Analytics:
Prosper Insights & Analytics is a leader in US consumer intelligence, offering 22 years of comprehensive zero-party data on behaviors, motivations, psychographics, and future spending plans. Our cutting-edge analytics transform this data into actionable insights, enabling marketers, policymakers, and investors to anticipate trends and respond proactively, gaining a competitive edge in their industries. Prosper datasets provide early macroeconomic forecasts weeks in advance of government data for institutional fixed income, equity and foreign exchange investors. www.ProsperInsights.com

Phil Rist
Prosper Insights & Analytics
+1 614-846-0146
info@goprosper.com
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