Shoppers Now Spending 5% of Wallets on Gas
Note: This is a preview of our deep dive into consumer spending and the macro economy. Download the report here: State of the Consumer 2022 Report.
Spending at gas stations represented nearly 5% of the total share of consumer wallet in May, 2022 the highest level since the Earnest Research panel began in 2017. This was nearly 2 percentage points higher than historic levels. This continues a trend of rising fuel spending immediately after Russia’s invasion of Ukraine.
Gas stations’ share of wallet increased slower than the price of gas, likely because 1) consumers are spending more almost everywhere (the May 2022 BLS report showed CPI for all items less food and energy rose 6.0% over the past 12 months) and 2) there is probably some price sensitivity with consumers avoiding long travel when possible and shifting to other forms of transport.
Additionally, Earnest Research data suggests that gas prices are rising faster than overall consumer spending at the pump, suggesting consumers are making fewer purchases or not filling up their tanks at the station. Download the full report here: State of the Consumer 2022 Report.