ANN ARBOR, Mich., Aug. 26 (UPI) -- Record-high gasoline prices drove down U.S. consumer confidence this month, the University of Michigan reported Friday.
"Consumers found it increasingly difficult to cope with the recent surge in gasoline prices as their required budget cutbacks escalated each time they filled their gas tank," survey Director Richard Curtin said.
The unusually large August decline was widespread among all demographic groups and across all regions of the country.
"Consumers anticipated higher inflation, higher interest rates, higher unemployment and a slower pace of economic growth during the year ahead," Curtin said.
Although consumers did not anticipate a recession during the year ahead, they were more likely to expect an economic downturn sometime during the next five years.
The school's index was 89.1 in the August 2005 survey, down from 96.5 in July and 95.9 in August of 2004. Only 10 monthly surveys since 1978 recorded a larger one-month decline.
