According to Yardeni Research, U.S. households now spend the equivalent of $5,000 a year on gasoline, up from $2,800 a year ago.

 

In March, the annual level of gasoline costs was $ 3,800, Yardeni noted. In the week of May 16, the national retail price of gasoline reached a record $4.59 per gallon, the firm said.

 

"No wonder the consumer sentiment index is so depressed. Not surprisingly, retail sales in April and May were surprisingly high," Yardeni said in a note.

 

According to Yardeni, consumers' inflation-adjusted incomes are barely growing, but they have accumulated a lot of savings, and they have begun to pay more on credit cards.

 

However, Yardeni says that it is not worth betting against American consumers: "When we are happy, we spend money. When we're depressed, we spend even more money!"

 

Retail sales data for April, released on Tuesday, was surprisingly strong. Year-on-year, retail sales for the month rose 8.2%.

 

Gasoline sales in April were actually down from March as prices temporarily fell before rising to a record high in May. According to the Commerce Department, gasoline spending in April rose nearly 37% from a year ago.

 

According to the AAA, a year ago the price of gasoline was $3.04 a gallon. This week, the average price rose above $4 a gallon in all 50 states, according to AAA data.

 

The national average price on Wednesday was $4.57 a gallon, according to the AAA website.