Gas Prices Affecting Consumer Spending

In a recent news article at Marketing Daily, they discuss the newest research on how high gas prices are affecting the spending habits of Americans. The article notes that expenditures on gas is not going down, but to counter that, consumers are spending less money in other areas. In car sales, every segment is seeing a decrease in the amount of vehicles purchased. Other industries are also being affected, with people not spending as much money on clothing, eating out, and even buying houses, 10% of those surveyed said they were delaying buying a new house. Thus far in 2008, 65% consumers are spending less on nonessential items, up from 42% in October of 2007. Numbers are not looking to improve, as the article states that gas prices are expected to double from their current price is $3.80 according to AAA.