Surging gas prices due to the Iran war sent consumer sentiment to a new low in the early part of May, according to a University of Michigan survey Friday.
The school’s closely watched Survey of Consumers posted a 48.2 preliminary reading, down 3.2% from April’s prior record swoon and off 7.7% from a year ago. Economists surveyed by Dow Jones had been looking for 49.7.
Inflation fears were the primary driver of the continued trend lower in consumer attitudes.
The trend, which also saw the current conditions index tumble 9%, is “owing to a surge in concerns about high prices both for personal finances as well as buying conditions for major purchases,” survey director Joanne Hsu said.
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