High gas prices trigger consumer cut backs

As summer approaches, so does travel season for many Americans. This often means higher gas prices, which tend to impact consumer decisions in other purchasing areas.

According to a new Harris Poll, over half of Americans who own a vehicle (55 percent) say they have cut back on products and/or services in order to pay for increased gasoline prices. As might be expected, those with lower household incomes are more impacted. Two-thirds (67 percent) of those with a household income of less than $35,000 annually have cut back on products or services because of higher gas prices compared to 37 percent of those who have a household income of $100,000 or more.

The Harris Poll involved 2,451 adults surveyed online between March 12 and 19.

Participants cited many places to cut back. Three-quarters (75 percent) cite dining out as a place to cut, as well as reduce driving in general (73 percent). Nearly two-thirds have reduced entertainment spending and weekend or day trips (both scored 65 percent). Luxury items have been slashed by 62 percent and 59 percent have cut vacations. Over half have cut back on clothing (55 percent) and movies (54 percent).

Smaller, but still significant, numbers have cut back on groceries (38 percen), personal grooming, such as haircuts or manicures (37 percent), and auto repairs or upkeep (24 percent).
 
Who’s to blame and who can stop rising gas prices?

Over one-third of Americans (37 percent) say they blame the oil companies the most for higher gas prices, while one-quarter (25 percent) blame unrest in the Middle East. Some also blame political figures; 17 percent cite President Obama; 5 percent blame Republicans in Congress; and 4 percent blame Democrats in Congress.

Who can stop rising gas prices? Just over one-third of Americans (37 percent) say the oil and gas industry while 30 percent believe the federal government can best stop rising gasoline prices. Fewer people believe consumers can stop rising gas prices (14 percent), while 4 percent point to state and local governments, 2 percent say the automotive industry, and 14 percent are not sure.

So What?

"Nearly nine-out-of-ten Americans say they expect gas prices to be higher as we enter the summer months. The impact of this kind of price hike is nearly universal and is felt every time an individual gets behind the wheel of their car. Many Americans are making real cuts in their budget to accommodate for the increase in the gas they need to get to work, school and run essential errands," says Sarah Simmons, Senior Research Executive and Thought Leader. "As our national economy starts to show signs of recovery, Americans are looking to the federal government and to the oil and natural gas industry to help find workable solutions."

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