U.S. Consumer Spending Holds Steady Despite Higher Fuel Prices

U.S. consumers have kept spending since fuel prices rose after the Iran war began in late February, but many are changing what and where they buy.

Members-only warehouse stores have recorded higher traffic at their fuel pumps. Fuel is typically cheaper at these locations. Walmart's chief financial officer told analysts late last month that customers and Sam's Club members are buying an average of less than 10 gallons per trip for the first time since 2022.

The executive called the shift an indication of stress. Costco members are visiting store gas stations more often to top off tanks sooner than usual because of concern over future prices, the company's chief financial officer said in late May.

Convenience stores, which sell 80 percent of all fuel in the United States, have seen fewer pump transactions. A sales analysis by the National Association of Convenience Stores found pump transactions at 130 companies fell nearly 10 percent in March and April compared with the same period last year.

Inside-store sales at those companies dropped 10.4 percent. The association's vice president said lost fuel volume also reduces in-store purchases. Restaurant customer traffic in April stayed level with the prior year, though spending rose 2.6 percent largely because of higher menu prices, the National Restaurant Association reported.

A key inflation gauge reached its highest level since October 2023. Between April 25 and May 23, U.S. retailers sold 6 percent fewer non-grocery products than in the same four weeks of 2025, according to Circana's chief retail advisor. Housewares, clothing, footwear and sports equipment posted the largest drops, between 5 and 7 percent.

ai recorded an early-March increase in visits to gas stations at BJ's, Costco and Sam's Club stores that coincided with rising fuel prices. By early May the data showed four straight weeks of lower foot traffic at clothing, electronics and home-furnishing stores alongside more visits to grocery and dollar stores.

“Gas is a kind of catalyst. It trickles down into the entire budget. We're trying to keep everything as normal as possible. But it's starting to feel like it's adding up more and more.”