Yardeni Research reports that Americans now spend the equivalent of $5,800 per year for gasoline, compared to $2,800 last year.

Yardeni pointed out that the March annual rate for gasoline expenditure was $3,800. According to the firm, gasoline retail prices reached an all-time high of $4.59 per gallon during the week ending May 16.

It’s no surprise that the Consumer Sentiment Index has been so low. Yardeni stated in a memo that it is amazing that retail sales were so strong during April-May.

Yardeni stated that consumers have very low inflation adjusted incomes, however, they have saved a lot and are now charging higher for credit cards.

Yardeni stated that the U.S. consumer is not to be trusted: “When people are content, they spend money.” If we feel depressed we tend to spend more.

The April retail sales figures were released Tuesday and showed surprising strength. Year-over-year, retail sales rose 8.2% for the month.

In April, gasoline sales fell from March. However, prices briefly dropped before rising to new records in May. Commerce Department data shows that gasoline consumption in April rose by almost 37% over the previous year.

AAA reports that gasoline prices were $3.04 per gallon last year. AAA data shows that the average gasoline price increased to $4 per gallon this week in all 50 US states.

According to The National Average Wednesday Gallon Price was $4.57 Per Gallon. AAA website.