Pain at the pump drives up US consumer spending in April
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The price of gasoline is shown at a gas station in Encinitas, California, on May 11.
PHOTO: REUTERS
- US consumer spending rose 0.5% in April to US$757.1 billion, a slowdown from March but in line with market expectations.
- Rising fuel prices drove this increase, with spending at petrol stations up by nearly 21% due to the Middle East war.
- Despite increased spending, consumers likely purchased less volume of goods and services as the data is not adjusted for accelerating inflation.
AI generated
WASHINGTON - Rising gas prices drove up US consumer spending in April even as overall consumption slowed, according to official data released May 14.
Retail sales totalled US$757.1 billion (S$965 billion) in the United States in April, up 0.5 per cent from the previous month and 4.9 per cent year-on-year.
That represents a sharp slowdown from March, when spending rose 1.6 per cent compared to February numbers. The data is nevertheless in line with market expectations.
The broad index of retail and food sales includes in-store purchases, dining out, gas purchases and more. It is not adjusted for inflation, which accelerated sharply over the period.
This implies that, while Americans spent more, they did not necessarily purchase more goods and services by volume.
US consumers are facing soaring prices at the pump due to the repercussions of the war in the Middle East. Their spending at gas stations increased by nearly 21 per cent compared to 2025, the May 14 data showed. AFP
