Pittsburghers are spending 40% more on gas
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Pittsburgh households spent nearly 40% more on gas year-over-year in May, according to PNC data shared with Axios.
Why it matters: The Iran war increased gas prices during the first half of the year, nearly reaching record highs for the region, squeezing locals' wallets already hit by increased electricity and water bills and property taxes.
Driving the news: PNC analyzed spending data of its 4 million households across the country, and with a large percentage of customers in the Pittsburgh area, narrowed down the data for the Pittsburgh region and shared it with Axios.
Yes, but: That isn't stopping Pittsburgh consumers from spending on other travel, PNC economist Brian LeBlanc tells Axios.
Zoom in: Pittsburghers spent 7.3% more overall in the last week of May compared to last year, when the national average for increased spending was 5% more.
Between the lines: LeBlanc believes there are three reasons for the increased spending across the country:
- Higher tax returns: Americans averaged 11% higher tax returns, says LeBlanc, and that extra money is helping to offset increased gas costs.
- Better job market: Before last week's sluggish job report, job numbers were solid for the first half of the year, and PNC saw direct deposit growth among its customers.
- Less wealth building: Fewer PNC customers transferred funds to brokerage accounts, indicating they were spending directly instead, says LeBlanc.
What they're saying: "This year, I have been suspicious that we would see spending continue, but the data gives me more encouragement," says LeBlanc.
What's next: Increased summer spending should continue, as long as gas prices continue to fall, says LeBlanc.