Households in the United States are now spending an estimated $5,000 per year on gasoline, a figure that's almost doubled since the year before, when the average household spending was $2,800, Yardeni Research reports.
Yardeni notes that annual gasoline spending in March was $3,800. But this week, Yardeni points out, the national average retail price for gas reached a record $4.59 per gallon. In other words, for "May, they are spending at an annual rate of $4,800."
"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, according to a CNBC report.
Yardeni cites that consumers' inflation-adjusted incomes are barely growing, but they are charging a lot more to credit cards.
"When we are happy, we spend money," Yardeni says. "When we are depressed, we spend even more money!"
New data for April retail sales turned out to be surprisingly strong. CNBC reports that "on a year-over-year basis, retail sales rose 8.2% for" April.
CNBC also notes that while gasoline sales for April and March declined, in May, they ramped up to record levels. Still, according to Commerce Department data, comparing last April to this year, spending on gas surged almost 37%.
© 2022 Newsmax. All rights reserved.