Higher Pump Prices Could Take $15 Billion out of U.S. Shoppers’ Wallets By Christmas Day

[jpak]

http://energytechstocks.com.previewmysite.com/wp/?p=492

Americans will hit the shopping malls this holiday season with up to $15 billion less to spend due to higher gas prices compared with a year ago. That could put a real crimp in the critical holiday selling season, which in turn could put a major dent in the consumer-driven U.S. economy.

As of this Saturday, there will be approximately 45 shopping days left until Christmas. The price of a gallon of regular gasoline in the United States is now about 85 cents higher than it was one year ago, with pump prices still rising as marketers try to recoup their higher crude costs. America’s estimated 100 million households reportedly use, on average, about four gallons of gas per day. As a result, Americans are now spending roughly $340 million more per day on gas than they did at this time last year.

Even if pump prices don’t rise any higher, Americans will still have roughly $14.75 billion less in discretionary income this holiday season. Tack on another few cents at the pump over the next week or two and that discretionary income loss could hit or exceed $15 billion.

Last year at this time, Americans told pollsters they were planning to spend around $900 per person on gifts during the holiday season. Exactly how the higher gas prices will impact sales this season is impossible to say. People’s options include cutting back on gift spending, spending as much as before but putting more on credit cards, or spending as much as before but delaying or eliminating other discretionary expenditures such as eating at a restaurant or taking a winter vacation.

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[Warpy]

1. Either they'll whip out the plastic for

"the last good Xmas we'll see for a while," or it will be a total frost.

Retailers in my area are already closing up shop. It's going to be interesting to see how the season continues to do a slow mo flop.

[XemaSab]

2. It's the curse of our current system

That buying tons of cheap crap from China is necessary to have a "good" holiday.

[izquierdista]

3. Feed me!

[phantom power]

4. The talking heads flip out when spending *growth* is "only" 2% YOY.

It's bad news! Because we aren't growing fast enough! Or something. Can you imagine how they will cover a year when spending really *drops* YOY?

Come to think of it, they may avoid covering it. Because some news is too unsettling to paste a smiley-face on.

"It's quite. Too quiet..."