Consumer Sentiment Plummets: Gas Prices & Stock Market Turmoil

0:00On March 27, consumer sentiment took a sharp dive this month, with the University of Michigan's index landing at 53.3. That's the lowest level since December, down from 55.5 in the preliminary reading and 56.6 back in February. Economists had expected it to ease just a bit, to 54.0. The drop hits middle and higher income folks hardest, especially those with stock investments. They are feeling the pinch from skyrocketing gas prices and wild swings in financial markets. All tied to the recent Iran conflict. Oil prices have surged more than 30 percent since late February attacks by the United States and Israel shook up the Middle East. That turmoil sent retail gas prices jumping $1 to $3.98 per gallon, according to AAA data. A stock market sell-off followed, and experts warned it could crimp consumer spending even more. On inflation, short-term expectations for the next year climbed to 3.8 percent from 3.4 percent, while five-year outlooks, dipped slightly to 3.2 percent.

1:05As families watch pump prices and portfolios, this gloom signals tougher times ahead for the economy. This has been US News Today, powered by AI.