Consumer sentiment has surged 10% due to lower gas prices, according to the University of Michigan’s latest survey. The survey’s director, Joanne Hsu, stated that the rise in sentiment was seen across various groups, including age, income, wealth, and political party.

Economic Outlook

Despite the increase in consumer sentiment, concerns about the economy persist. The survey found that sentiment is still down 12% from a year ago, and the conflict in the Middle East continues to impact energy markets. Hsu noted that consumer sentiment is closely tied to gas prices, and any recovery hinges on the stabilization of energy markets.

Retail spending in June grew by 0.2%, according to Commerce Department data. However, when excluding higher gas prices, spending was up by 0.7% for the month. The labor market remains in decent shape, with unemployment at a low 4.2% and new applications for unemployment assistance at historically low levels.

Original reporting: El Paso News (HLL/CB) — read the source article.