Consumers are feeling the impact of gas prices all the more as they grapple with overall inflation running near its highest level in decades, as well as other problems like stock market losses and disruptions to the supply chain that have made products—including baby formula—hard to find. Inflation in particular seriously crimped consumer confidence in early May, a survey by the University of Michigan showed Friday. The university’s Index of Consumer Sentiment measuring how people feel about their own finances and the economy fell to a fresh low since 2011, undoing an April uptick that coincided with the short-lived reprieve in pump prices. (Consumer confidence is an important economic indicator because it shows how willing people are to spend, and consumer spending is the main engine of economic growth.) Higher gas prices were likely a big part of the early May downturn, economists at Wells Fargo said. “It is tough to find a silver lining for consumers so far in 2022,” Tim Quinlan and Sara Cotsakis of Wells Fargo Securities said in a commentary. “The pain at the pump is back in May.” Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
