Consumer sentiment hits record low under weight of higher gas prices, inflation worries
The University of Michigan's consumer sentiment index hit a record low of 49.8 this month, driven down by higher gas prices and inflation worries. Consumer sentiment has been persistently low and declined across the country, political parties, age, and income.
The University of Michigan's nationwide survey showed consumer sentiment at a record low. The index hit 49.8 this month, surpassing the previous low of 50 in June 2022. Joanne Hsu, the survey's director and chief economist, said consumer sentiment has been low for some time and worsened with the start of the Iran war. Americans are seeing a deterioration in their personal finances and business conditions. Higher gas prices are a major factor, but consumers also expect inflation to spill over into grocery prices due to rising energy costs. Labor market expectations have been poor all year, and short-run consumer expectations worsened after the war started.
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