Americans Keep Spending as Savings Shrink Under Higher Gas and Grocery Costs
Updated
Updated · The Washington Post · Jun 5
Americans Keep Spending as Savings Shrink Under Higher Gas and Grocery Costs
3 articles · Updated · The Washington Post · Jun 5
Summary
Consumer spending is still strong enough to help carry the U.S. economy, even as households increasingly draw down savings to keep buying.
Higher gas prices since the Iran war began are lifting grocery and transportation costs, putting more pressure on household budgets.
Tax refunds and stock-market gains have cushioned some of that hit, helping many Americans maintain spending despite surging inflation.
The strain is starting to show in reduced saving and scaled-back summer vacation plans, signaling limits to how long consumers can keep propping up growth.