U.S. consumer sentiment has dropped to a record low in early May, driven by rising gasoline prices tied to the ongoing conflict between the U.S. and Iran, according to a survey from the University of Michigan released Friday.
The data highlights growing unease among households over the potential for sustained inflationary pressure as geopolitical tensions persist.
The survey underscores how energy costs are increasingly shaping consumer behavior and economic outlooks.
With oil prices remaining elevated, the ripple effects are being felt across sectors, particularly in transportation and retail.
Analysts suggest that the continued volatility in the Middle East could prolong the inflationary cycle, complicating the Federal Reserve’s path toward rate normalization.
This development follows a broader trend of declining confidence in the U.S. economy, with recent data showing mixed signals on inflation and employment.