A Nielsen study finds that 4 dollar gas would mean a hefty shift in consumer’s discretionary budgets:
Dramatic fluctuations in gas prices are disrupting U.S. consumer spending and expected to continue, leaving consumers with less money to spend at retail, entertainment and dining out, according to a new study by The Nielsen Company. Nielsen’s research shows that in 2007, the gas share of consumers’ weekly spending ranged from 12 to 16 percent. As gas prices continue to rise, Nielsen expects consumers’ gas share of their weekly spend to rise to 19 percent…
“With gas prices expected to hit $4 per gallon this year, consumers will be spending nearly a fifth of their household budget on gas,” said Todd Hale, senior vice president, Consumer & Shopper Insights, Nielsen Consumer Panel Services. “That kind of increase has a direct impact on what they can afford to spend and is something retailers will need to address.”
The Big Picture had two recent images that relate:
Pretty sobering stuff.
