• Wells Fargo CFO Mike Santomassimo says consumers are spending about 45-50% more on gas than a year ago.
  • Despite higher energy costs, overall consumer spending remains resilient, with stress concentrated among lower-income households.
  • The trend highlights how rising gas prices are reshaping card spend mix and may signal broader adjustments in household budgets.

Wells Fargo & Co. Chief Financial Officer Mike Santomassimo painted a stark picture of the toll higher energy prices are taking on U.S. consumers, stating that they are spending "probably 45% to 50% more" on gasoline than they were a year ago. The remarks, made during a conference on Thursday, underscore a sharp increase in fuel costs that is eating into household budgets even as overall spending stays robust.

According to Santomassimo, the surge in gas spending is now a prominent feature of credit and debit card transactions, reflecting a larger share of consumers' wallets devoted to energy. "It's definitely a bigger piece of the pie," he said, adding that the trend is most acute for lower-income customers, who are feeling the pinch more than their higher-earning counterparts.

Yet the executive noted that overall consumer spending has held up better than many expected, buoyed by a strong labor market and accumulated savings. "The consumer is still spending, but you're seeing some shift in where that money goes," Santomassimo explained, pointing to a mix of resilience and strain that banks are closely monitoring.

Analysts have warned that if gas prices remain elevated, households may be forced to cut back on discretionary purchases, potentially slowing economic growth. Wells Fargo's own data shows that while higher-income groups continue to spend freely, less affluent consumers are increasingly reliant on credit to bridge the gap, raising concerns about future delinquencies.

"What we're watching is whether this energy cost becomes a persistent drag on spending patterns," Santomassimo said, emphasizing that the bank is prepared for a range of scenarios. "We think the consumer can handle this for now, but every month that goes by, the pressure builds."

Attempts to reach other major banks for comment on their own consumer spending data were not immediately successful.

Correction: An earlier version of this article misquoted the percentage increase in gas spending. The correct figure is 45-50%.