U.S. households are currently spending $5000 a year on gasoline. The rate was $2800 a year ago, and $3800 in the month of March as per the report by Yardeni Research.
Yardeni 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 inflation-adjusted incomes of consumers are hardly growing, but they have a lot of savings.
But Yardeni said to not bet against the US consumer, “When we are happy, we spend money. When we are depressed, we spend even more money.”
Retail sales increased 8.2% in April month on an annual basis.
Gasoline sales declined in April from March, as prices ramped up to record-high levels in May.