Climbing gas prices lower consumer sentiment

Chapman University’s Anderson Center for Economic Research recently released California consumer sentiment survey results, demonstrating that although continued job growth and lowered unemployment rates are helping boost consumer sentiment, higher gas prices have done the opposite.

According to a report on fuel price data from the California Center for Jobs and the Economy, the fuel price gap between California and the rest of the U.S. continues to grow:

In May, the average California price for regular gasoline was $3.752, or $1.034 above the U.S. average of $2.718. This is the largest cost gap since June 2000.

Diesel in California is also more expensive than the U.S. rate, at 37 cents higher than the national average. Prices are also widely differentiated by region, such as Sacramento, where the average price per gallon in May was $3.522, and Los Angeles, with an average May price of $3.903.

A prepared release from the Anderson Center noted that “the sharp increases in gasoline prices over the past two months have negatively affected consumers’ mood.”

The current economic conditions index is at 102.9 in May of 2015, a decrease of 2.0 points from the revised reading of 104.9 in February of 2015. The index measuring future economic conditions increased slightly with a reading of 102.5 in May, compared to the revised reading of 101.7 in February 2015.