Consumer sentiment is closely watched by experts because it tends to predict how much people are willing to spend—a major factor in gauging the health of the economy. Economists were surprised the outlook got better considering rapidly rising prices, ongoing problems with manufacturing and transporting goods, and the economic fallout from the Russian invasion of Ukraine. Consumers’ feelings about the future of the broader economy, their own finances, and the job market all improved notably. One reason for the optimism: Gas prices, a major source of financial angst, have come down a bit after spiking in March. Consumers have noticed, Richard Curtin, chief economist at the University of Michigan Surveys of Consumers, said in a post accompanying the report. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
