If it isn’t gas, it’s groceries.
Instead of splurging, cash-strapped Americans have been redirecting their savings at the gas pump over the past 12 months to food, rent and other necessities, a new study by personal finance Web site Bankrate.com shows.
For months, out-of-tune economists have been predicting a surge in retail spending, thanks to lower prices at the pump. That didn’t happen in the first quarter, though, or in April, either, when US retail sales came in flat, failing to meet even an anemic forecast of 0.2 percent growth.
Forty percent of Americans who spent gas-pump savings allocated the extra money to essentials, including groceries and rent, Bankrate’s survey of 1,000 adults in the continental US found. That was true across every age, education and income group.
“Household budgets are very tight, which is why we have this slow-growth economic recovery,” said Greg McBride, chief financial analyst for Bankrate. “Any breathing room people get is quickly consumed by other needs.”
Roughly 20 percent of Americans saved the extra money, while just 14 percent spent it on discretionary items, the study showed.
Respondents reported better job security and higher net worth, but wage growth is the missing piece , Bankrate said.