Overview
- The University of Michigan index, finalized Friday, fell 6% to 53.3, the weakest reading since December.
- Survey director Joanne Hsu linked the decline to the Iran conflict’s oil shock and volatile markets, with especially sharp drops among middle- and higher-income and stock-owning households.
- One-year inflation expectations climbed to 3.8%, the biggest monthly increase in about a year, signaling more concern about near-term prices.
- Oil prices have risen more than 30% since late February and AAA puts average gasoline near $3.98 a gallon after a $1 jump, squeezing family budgets.
- Economists told Reuters the mix of pricier fuel and stock losses could curb consumer spending and weigh on growth if turbulence continues.