While consumers may be saving more, consumer spending should still slowly rise over 2015 as the U.S. economy improves. According to Goldman Sachs, it takes 12 months for shoppers to start spending their gas savings at stores, which means that retailers could see a boost in July.
“Consumers appear to be saving most of their recent windfall from lower gasoline prices,” Gus Faucher, a senior economist at PNC Financial Services Group, said in a note. “However, consumer spending growth will be solid in 2015 thanks to more jobs, higher wages and lower energy costs. Households will be able to both spend more and save more this year.”
Consumer Discretionary Select Sector SPDR
For more information on consumer spending, visit our consumer discretionary category.
Max Chen contributed to this article.