High Gas Prices Hurt Consumer Spending. Duh.

Filed in archive on July 24, 2007

Reuters reported that the record gas prices currently afflicting the U.S. (and world) consumer is having an impact on consumer spending. With the national average remaining at around $3 per gallon of unleaded, buyers are having to cutback on "personal consumption expenditures" like taking roadtrips or eating out.

"When gas prices spike, there seems to be a downturn in other discretionary spending, particularly retail spending," said AAA spokesman Geoff Sundstrom.

When will prices come down finally? No one, least of all the federal government knows for sure. But historical patterns point to September as the month when prices ease.

[Source: Reuters]