US consumer sentiment climbs as gas prices ease

Consumer sentiment in the United States rose in early June, bouncing back from a record low as falling gasoline prices provided a measure of relief to households. The preliminary reading of the University of Michigan's Index of Consumer Sentiment increased to 48.9, up approximately 9% from May's all-time low of 44.8.

The improvement was broad-based across age, education, and political affiliation, but was particularly pronounced among lower-income consumers. Joanne Hsu, director of the Surveys of Consumers, attributed the gains directly to an easing of gas prices in early June, noting that gasoline comprises a larger share of budgets for lower-income households. National average retail gasoline prices have declined from a four-year high of approximately $4.56 per gallon in late May to around $4.11 in mid-June.

Despite the monthly increase, sentiment remains deeply depressed, sitting 13 points below its level in January and 19 points below where it stood in June of last year. Consumers continue to express significant concern about inflation, which jumped above 4% in May for the first time in three years. Hsu stated that households feel burdened by the recent escalation in...