Key insights
- Chime CEO reports a 25% increase in fuel spending among its customers in March, attributed to rising oil prices following US attacks on Iran. While overall consumer spending remains stable, the surge in fuel costs is creating a 'pinch' for consumers. This increase in energy costs could contribute to inflationary pressures, potentially impacting consumer discretionary spending and overall economic growth, albeit modestly.
Investing.com -- Chime Financial Inc.’s customers spent 25% more on fuel in March compared with February as US attacks on Iran drove up oil prices.
Chime Chief Executive Officer Chris Britt said US consumers generally remain resilient, with spending and savings rates consistent, but fuel costs have surged.
"From February to March we did see, not surprisingly, a pretty significant uptick in the amount that consumers were spending on their fuel purchases," Britt said in a Bloomberg Television interview Thursday. "That is definitely something consumers are feeling a real pinch in."
President Donald Trump has been trying to persuade Americans that the US attacks on Iran, which started at the end of February, are necessary, and that the surge in gasoline prices to higher than $4 for the first time since 2022 is temporary. Brent crude prices jumped as Trump’s prime-time speech Wednesday night dashed hopes for a quick end to the war.
Britt said all other consumer spending, including on groceries, mobile phones and other monthly bills, has held steady.
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