Families Cut Summer Spending as Gas Prices Rise, According to Americas Research Group Survey
Charleston, SC, May 15, 2006… One half of American consumers (49.8%) plan to reduce personal and family spending due to higher gas prices, according to the findings of a new survey conducted by America’s Research Group (ARG). Almost one quarter of consumers (24.7%) said that they will definitely spend much less this summer due to higher gas prices and 56.6% will somewhat reduce their summer spending.
The “Consumer Mind Reader” research also reveals that a significant number of families (45.7%) will change their vacation plans if gas prices remain above $3.00, up to $3.50 a gallon.
“Higher gas prices, rising prices at their local supermarket and feeling the pinch of credit card debt are taking their toll on American families,” said C. Britt Beemer, founder and CEO of ARG.
In the month of April, 16.5% of consumers postponed or delayed a major purchase of $500 or more. That compares to 15.7% a year ago in April. Of those who did postpone a major purchase, 28.5% said it was more than they wanted to spend, 21.8% could not find the item they wanted, 20.6% cited they did not want to spend that much money, and 16.4% specifically cited higher gas prices.
Consumer confidence in employment is also on the wane, Beemer stated, citing the fact that only 28.3% feel “very confident” about getting a job in April, compared to 35.9% in February.
The survey of 1,000 consumers was conducted from May 5th to May 9th. ARG conducts “Consumer Mind Reader” surveys every two months.
America’s Research Group is the consumer-behavior marketing firm that provides clients the insight, strategy and tactics to increase market share. America’s Research Group’s expertise in consumer behavior has made it a key resource and advisor to leading brands and top retailers in the nation for 25 years.