WASHINGTON, April 10 (Reuters) – U.S. consumer sentiment plunged to a record low in early April and consumers anticipated a surge in inflation in the next 12 months, a survey showed on Friday.
The University of Michigan’s Surveys of Consumers said its Consumer Sentiment Index tumbled to an all-time low of 47.6 this month from a final reading of 53.3 in March. Economists polled by Reuters had forecast the index easing to 52.0.
The deterioration in sentiment was across age, income and political party affiliation, though the survey noted that almost all the responses came before a ceasefire agreement earlier this week in the U.S.-Israeli war with Iran.
The war has sent oil prices surging by more than 30%, with the national average retail gasoline price breaking above $4 a gallon for the first time in more than three years.
“Open ended comments show that many consumers blame the Iran conflict for unfavorable changes to the economy,” said Joanne Hsu, the director of the Surveys of Consumers.
The survey’s measure of consumer expectations for inflation over the next year jumped to 4.8% this month from 3.8% in March. Consumers’ expectations for inflation over the next five years rose to 3.4% from 3.2% last month.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
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