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U.S. Consumer Sentiment Sinks to Record Low on Energy Price Pain

Energy supply shocks from the Middle East have turned high gas prices into the main drag on how Americans feel about the economy.

Overview

  • The University of Michigan index fell to a preliminary 48.2, the lowest reading since records began in 1952.
  • Consumers most often pointed to gasoline prices and tariffs as the reason their views have darkened, the survey’s director said.
  • Gasoline has held above $4 a gallon for weeks because the Strait of Hormuz closure during the Iran war has lifted global energy costs.
  • Buying conditions for big purchases worsened, a shift showing up in Whirlpool’s report of recession-level appliance demand.
  • The labor market stayed firm in April with 4.3% unemployment and 115,000 new jobs, which has so far helped prevent a broad pullback in spending.