MARKET INSIDER

Households are now spending an estimated $5,000 a year on gasoline

PUBLISHED WED, MAY 18 2022 | 8:27 AM EDT | UPDATED WED, MAY 18 2022 | 11:00 AM EDT

Patti Domm
@IN/PATTI-DOMM-9224884/
@PATTIDOMM

KEY POINTS
• U.S. households are spending the equivalent of $5,000 a year on gasoline, according to Yardeni Research.
• That is up from about $2,800 a year ago and $3,800 as recently as March.
• Yardeni said consumers’ inflation-adjusted incomes are barely growing, but they have accumulated a lot of savings, and they are charging more on credit cards.

U.S. households are now spending the equivalent of $5,000 a year on gasoline, up from $2,800 a year ago, according to Yardeni Research. ... In March, the annual rate of gasoline spending was at $3,800, Yardeni noted. During the week of May 16, the national retail price for gasoline reached a record $4.59 per gallon, the firm said.

“No wonder that the Consumer Sentiment Index is so depressed. The wonder is that retail sales have been so surprisingly strong during April and May,” Yardeni said in a note. ... Yardeni said consumers’ inflation-adjusted incomes are barely growing, but they have accumulated a lot of savings, and they are charging more on credit cards.

But Yardeni said don’t bet against the U.S. consumer: “When we are happy, we spend money. When we are depressed, we spend even more money!” ... Retail sales data for April, released Tuesday, was surprisingly strong. On a year-over-year basis, retail sales rose 8.2% for the month.

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