After months of declining views driven in part by a surge in gas prices, Americans are feeling more optimistic about the economy, according to new data released Friday.

Consumer Sentiment Rises

Consumer sentiment rose this month from an earlier reading of 48.9 to a final reading of 49.5, the University of Michigan’s latest survey showed. The initial reading marked the first increase in sentiment since February, before the US-Israeli war with Iran pushed up global energy prices.

Prices at the pump reached near-historic highs after the Middle East conflict resulted in the near-closure of the Strait of Hormuz, a key waterway that allows for the flow of oil between continents. That led to two straight readings of record-low consumer sentiment as Americans devoted more of their budgets to gas.

Gas prices have dropped in recent weeks as a fragile ceasefire mostly holds, leading to a rebound in consumer sentiment. However, consumers are still significantly more downbeat on the economy compared to before the war started. University of Michigan data shows a 13% decline in sentiment compared to February.

Even with gas prices easing, higher costs still contribute to the negative feelings regarding the economy. For the third straight month, over half of consumers spontaneously mentioned that high prices are weighing down their personal finances, according to University of Michigan surveys director Joanne Hsu.

Original reporting: KTVZ (Central Oregon) — read the source article.