Consumer Sentiment Nears Record Low as Gasoline Costs Surge

US consumer sentiment sank to near its record low in early October as households reported mounting frustration with the cost of living, according to the University of Michigan’s closely watched survey.

The preliminary Consumer Sentiment Index dropped to 46.3 from 48.1 in September, just above the record low of 44.8 set in May. The gauge of current economic conditions plunged to 44.7.

Year-ahead inflation expectations rose to 4.7 percent from 4.6 percent, while long-run expectations ticked up to 3.5 percent from 3.4 percent.

Survey director Joanne Hsu said frustration over the cost of living continues to mount. Reuters reported the sharpest drops came among lower-income consumers and those with smaller stock portfolios.

The gloom followed an inflation report showing consumer prices up 3.7 percent annually in September, accelerating from 3.4 percent in August. Gasoline prices surged 9.1 percent in the month alone.

The Conference Board’s separate consumer confidence index also declined in September, falling 6.7 points to 81.9 as Americans grew more concerned about employment, income and business conditions, according to the Daily Caller.