Michelle ThompsonDespite the fact that gas price increases haven’t yet made Americans depressed, they are nevertheless anxious about inflation, the state of the economy, and the potential of a government shutdown.
According to a preliminary measure released on Friday, consumer sentiment, which is monitored by the University of Michigan, decreased by 1.8 points from the previous month in September.
According to a press release from the University of Michigan’s Surveys of Consumers, “both short-run and long-run expectations for economic conditions improved modestly this month, though on net consumers remain relatively tentative about the trajectory of the economy.” Few customers have brought up the prospective federal government shutdown so yet, but if it happens, consumer perceptions of the economy would probably deteriorate, as was the case just a few months ago when the debt ceiling was on the verge of being breached.
Given that gasoline prices are one of the most obvious signs of inflation, sentiment may soon begin to deteriorate. Last summer, when gas prices topped $5 per gallon and inflation hit a four-decade high, sentiment hit its lowest point on record. According to AAA, the national average price for normal gasoline on Friday was $3.87 per gallon, which is seven cents more expensive than a week earlier and 17 cents more expensive than the same day last year.
Inflation expectations among consumers for the upcoming year decreased to 3.1% in September from 3.5% in August.
