US Consumer Sentiment Falls in Early March as Inflation Worries Mount

U.S. consumer sentiment fell more than expected in early March as gasoline prices surged to a record high in the aftermath of Russia's war against Ukraine, a survey showed on Friday.

The University of Michigan said its preliminary consumer sentiment index dropped to 59.7 in the first half of this month from a final reading of 62.8 in February.

Economists polled by Reuters had forecast the index falling to 61.4. Following Russia's invasion of Ukraine on Feb. 24, crude oil prices jumped more than 30%, with global benchmark Brent hitting a 2008 high at $139 a barrel, before retreating to trade around $110 a barrel on Friday.

Gas $4.33, up From $3.48

U.S. gasoline prices are averaging a record $4.331 per gallon compared with $3.48 a month ago, AAA data showed.

Further increases are likely after President Joe Biden on Tuesday banned imports of Russian oil into the United States, as part of a wide ranging tough sanctions against Moscow.

The University of Michigan survey's gauge of current economic conditions slipped to a reading of 67.8 from 68.2 in February. Its measure of consumer expectations declined to 54.4 from 59.4 in February.

The survey's one-year inflation expectations jumped to 5.4%, the highest since 1981, from 4.9% in February. Its five-year inflation was steady at 3.0%.

The government reported on Thursday that consumer prices recorded their largest annual increase in 40 years in February.