Consumer sentiment surges due to lower gas prices | CNN Business

Lower gas prices helped Americans feel more optimistic about the economy early this month, though that relief might be short lived if the conflict in the Middle East continues to intensify. The University of Michigan’s latest survey of Americans, released Friday, showed that consumer sentiment surged 10% early this month to a preliminary reading of 54.4, the highest point since February. “Consumer sentiment climbed to its highest reading since February of this year on the basis of easing price pressures at the pump in recent weeks,” Joanne Hsu, the survey’s director, said in a release. “This month’s rise in sentiment was pervasive across the population, seen across groups by age, income, wealth, and political party.” “However, with prices remaining frustratingly high, consumers are hardly ebullient about the economy; sentiment is down 12% from a year ago,” she added. Sentiment has already mostly recovered from the record low reached in May, as the war with Iran sent energy prices skyrocketing, though it remains below pre-war levels. Consumer sentiment is closely tied with gas prices, so any recovery hinges on whether energy markets stabilize, which largely hinges