Friday 10 June 2022 10:55 PM Consumer sentiment plunges to an all-time low amid soaring inflation trends now

Consumer sentiment in the US has plunged to an all-time low amid soaring inflation, even as Treasury Secretary Janet Yellen expresses puzzlement at Americans' dim view on the economy.

The University of Michigan's index of consumer sentiment plunged 14 percent this month from May, to its lowest level since the survey began in its current form in the mid 1970s, according to a preliminary report on Friday.

Nearly half of consumers polled (46 percent) attributed their negative views to inflation, up from 38 percent in May, a level that has only been hit once since 1981, during the Great Recession.

A new inflation reading on Friday morning showed that consumer prices jumped 8.6 percent in May from a year ago, higher than expected and the quickest increase since December 1981.

The UMich survey found that half of all consumers spontaneously mentioned gas during their interviews, compared with 30 percent in May and only 13 percent a year ago. 

It comes as gas prices creep toward a $5 per gallon national average. The average stood at $4.99 on Friday, up 14 percent from last month and a 62 percent increase from a year ago, according to AAA. 

Consumers expect gas prices to continue to rise a median of 25 cents over the next year, more than double the May reading and the second highest since 2015, the UMich survey found. 

In addition, a majority of consumers spontaneously mentioned supply shortages for the ninth consecutive month. 

Supply chain issues have caused intermittent shortages of all kinds of goods for much of the past year, and the crisis shortage of baby formula following a key plant's shutdown has only highlighted the issue. 

Survey Director Joanne Hsu said that the year-ahead outlook in business conditions showed the sharpest plunge, dropping 24 percent from May. 

Consumers' assessments of their personal financial situation worsened about 20 percent.