Despite inflation, consumer spending remained strong in June, rising 1% for the month after spending on food and goods dropped in May, according to figures released Friday by the U.S. Census Bureau.
When spending at gas stations is excluded, overall spending jumped .7% nationwide last month.
In May, car and parts sales dropped 3.5% There was also a .9% drop in furniture spending and a 1.3% decrease in electronic spending. Those sectors recovered in June. Car and parts sales increased .8%, furniture spending was up 1.4% and electronic spending jumped .4%.
In the last year, overall consumer spending has been up 8.1%, driven by high gas prices. When excluding spending at gas stations, overall spending has increased by 5.3%.
After seeing an initial drop at the onset of the pandemic, consumer spending dramatically increased, especially in early 2021. Consumer spending cooled last summer but rose again in late 2021 and early 2022.
One possible impact on future consumer spending is how inflation is outpacing wage growth. According to federal data, hourly wages are up just 5.1% in the last year, compared to a 9.1% increase in inflation over the previous year.
