A University of Michigan survey released Friday showed US consumer sentiment plummeting to a new low in early May, driven by surging gas prices and inflation fears.
The Survey of Consumers posted a preliminary reading of 48.2, down 3.2% from April's prior record and off 7.7% from the same time last year.
Economists had expected a reading of 49.7. The current conditions index tumbled 9%, with one-third of respondents citing gas prices as their biggest concern.
The expectations index, however, saw a modest increase of 0.8% to 48.5, up 1.3% from last year.
Despite the bleak outlook, stock indexes held positive after the release, buoyed by stronger-than-expected job creation in April and a steady unemployment rate.