High Gas Prices Won’t Slow US Consumers Down
Original release date: May 17, 2022
As inflation continues to set in, April saw a steady growth of 8.7% percent over year-over-year for All Stores, with All Stores Less Automotive also growing 8.7% and All Stores Less Automotive, Food, Pharmacies growing by 9.4%.
Gasoline Stations remain the largest category this month with a growth of 37.2% year-over-year. Inflation is still the cause of this, as gas prices continue to rise with no immediate end in sight. Another category that is highly influenced by this trend of rising prices is Grocery Stores, continuing to grow with a 9.9% growth year-over-year.
Consumers are beginning to return to restaurants again, with the category showing significant growth in year-over year, with Food Services and Drinking Places sales rising 20.7%. Consumers are looking to go back out and spend on services again, with a lot of service-based retailers raising prices to make up for lost revenues in the pandemic (and to counterbalance supply chains strains). Clothing and Accessories Stores, which also offer great in-store service, are also up 11.2% year-over-year with consumers prepping for a summer full of activities, and hopefully travel.
The categories that struggled in April were all feeling the effects of supply chain concerns and the Russian invasion of Ukraine. Motor Vehicle and Parts Dealers, and Electronics and Appliance Stores were both down -1.0% and -4.7% respectively year-over-year, with the inability to produce microchips quickly/efficiently continuing. Overall, April showed steady growth, which is surprising considering inflation and supply chain woes. It seems that consumers are continuing to move back to “normal” and experience retail services once again. Will we see the service-based industries continue to improve, or will inflation effect people’s ability to spend on experiences?