$3-PER-GALLON GASOLINE WILL PUT DAMPER ON CONSUMER SPENDING: NEW RESEARCH BY THE BEEMER REPORT.COM
Orlando, FL, May 25, 2010.... Nearly three out of five American consumers (57.7%) say they will be forced to cut back on discretionary spending as soon as gas prices reach $3 a gallon, according to research conducted by the BeemerReport.com.
"The double whammy of a volatile stock market over the past two weeks and the prospect of $3-per-gallon gas prices is enough to push consumers over the edge to cut back on spending, just at a time when many were looking to be more positive," says consumer trend expert C. Britt Beemer.
The areas experiencing the biggest cutbacks will be retail stores, restaurants, movie theaters and the travel industry. Almost twenty percent of Americans (19.3%) say they will shop less, 19.2% will eat out less often, 10.2% will go to fewer movies, and 7.1% will cut back on vacation plans.
"This parallels consumer behavior in previous years when gas reached $3 per gallon," Beemer says. "The retail sector tends to suffer most in these conditions, because the consumer has few other options to reduce spending," he added.
The research consisted of 1,000 telephone interviews conducted Saturday through Tuesday, May 1 to 4, 2010, at America's Research Group (ARG) headquarters in Charleston, SC. The error factor is plus or minus 3.8%.
BeemerReport.com, a largely video-based website, features constantly updated poll data. The site includes a minimum of 10 new research findings per month on a variety of topics. Beemer is one of the nation's foremost experts in consumer behavior. Known for his detailed reports and honest opinion, Beemer is frequently quoted by major broadcast and print media. Beemer is founder and CEO of America's Research Group (ARG).