“The mood among consumers remains pretty bleak,” Pantheon Macroeconomics Chief U.S. Economist Samuel Tombs said.
Relentless price pressures have undermined real incomes and strained household budgets for several months, influencing the outlook of voters with the approach of the Nov. 3 mid-term elections.
Measures of the mood among consumers — including surveys by the University of Michigan and New York Fed — have traced a decline in sentiment since February, when air strikes by the U.S. and Israel against Iran led to a reduction in the supply of crude oil, pushing up fuel costs.
The average price for a gallon of gasoline has surged 28% during the past year to $4.26, according to AAA. During the past month, though, the price has fallen from $4.47 for a 4.7% decline.
Despite some relief at the gas pump since September, “consumers continued to express frustration with rising costs,” McCormick said, adding that “references to prices, the high cost of food and groceries, and oil and diesel prices rose” in write-in survey responses.
In turn, consumers plan to trim spending on services and durable goods over the next six months, the Conference Board said.
“The mood among consumers remains pretty bleak,” Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, said in a note.
“The recovery in the headline index to its highest level since June comes as a surprise, given the still-high level of gas prices, stalling stock price appreciation and the lackluster labor market,” Tombs said, referring to the Confidence Index.
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