Americans are starting to watch their spending more carefully as gasoline prices reach levels not seen since October 2008.
Diane Swonk, chief economist at Mesirow Financial, says Thursday's government report on retail sales indicates that consumers are skipping a restaurant meal or a movie because they have to spend more to drive.
Swonk estimates gasoline prices are affecting the spending habits of more than half of U.S. drivers. The national average for a gallon of regular hit $3.10 on Monday, according to the Energy Department's Energy Information Administration. That's about 37 cents more than a year ago.
Average pump prices in major cities range from $2.91 in Denver to $3.38 in San Francisco. Drivers in New York City pay about $3.19 a gallon, while gas stations charge $3.24 a gallon in Chicago and $3.37 in Los Angeles. In Boston gas goes for $3.11 a gallon. It's $2.92 in Houston and $3.20 a gallon in Miami.
For every penny the price at the pump increases, it costs consumers overall an additional $4 million, according to Cameron Hanover analyst Peter Beutel. If the price goes up a dime, it means consumers pay $40 million more each day that 10-cent hike is in place.
Swonk noticed consumers starting to make trade-offs in November and December. "As we moved into December, even some of their gift purchases were curtailed as prices at the pump continued to escalate," she said.
Swonk says economists at Mesirow "think of higher commodities prices as more of a threat to demand than inflation at this stage of the game." On Friday, the Labor Department said that excluding gas and food prices, there is little growth in inflation at the consumer level.
Americans are seeing more take-home pay, thanks to the 2 percent payroll tax cuts that took effect at the start of the year. The hope is consumers will help the economy by spending more, but higher gas prices could torpedo that plan.
"The last thing we really want" is to use the savings "to fill up our tanks," Swonk said.
Gasoline is closely linked to the price of crude oil, which is at its highest level in 26 months, driven mainly by stronger demand in other countries, particularly emerging markets such as China. Benchmark crude for February delivery was little changed on the New York Mercantile Exchange, down 16 cents to settle at $91.38 a barrel.
The International Energy Agency predicted that worldwide economic growth and a cold winter in the northern hemisphere will support higher-than-expected oil demand this year. The Paris-based agency expects demand will rise to 89.1 million barrels a day — up from 87.7 million barrels a day in 2010. The IEA warned that high crude oil prices could slow economic recovery, and oil producers, investors and consumers will suffer if prices stay around $100 a barrel.
In other Nymex trading in February contracts, heating oil added 0.07 cent to settle at $2.6459 a gallon, and gasoline lost 1.54 cents to settle at $2.4792 a gallon. Natural gas March futures fell 5.5 cents to settle at $4.425 per 1,000 cubic feet.
In London, Brent crude rose 37 cents to settle at $97.80 a barrel on the ICE Futures exchange.
Keywords clouds text link
Dịch vụ seo, Dịch vụ seo nhanh , Thiết kế website , máy sấy thịt bò mỹ thành lập doanh nghiệp
Visunhome, gương trang trí nội thất cửa kính cường lực Vinhomes Grand Park lắp camera Song Phát thiết kế nhà thegioinhaxuong.net/
|aviatorsgame.com ban nhạc||confirmationbiased.com|
|mariankihogo.com ốp lưng||Giường ngủ triệu gia Ku bet ku casino|
mặt nạ mặt nạ ngủ Mặt nạ môi mặt nạ bùn mặt nạ kem mặt nạ bột mặt nạ tẩy tế bào chết mặt nạ đất sét mặt nạ giấy mặt nạ dưỡng mặt nạ đắp mặt mặt nạ trị mụn
mặt nạ tế bào gốc mặt nạ trị nám tem chống giả
© 2020 US News. All Rights Reserved.