xcel
08-07-2006, 10:06 AM
But lifestyles are kept, survey finds. (http://www.freep.com/apps/pbcs.dll/article?AID=/20060807/BUSINESS06/608070340/-1/BUSINESS07)
Alejandro Bodipo-Memba - Detroit Free Press - August 7, 2006
http://www.cleanmpg.com/photos/data/501/Chevrolet_Silverado_Towing_Race_Boat.jpg
Change in lifestyle unlikely - Chevrolet Silverado w/ Race Boat in tow.
Most Americans believe gas prices will keep rising over the next few months, but a report suggests that most folks remain confident that they will be able to maintain their lifestyles even if prices go beyond $4 a gallon.
A July telephone survey of more than 1,000 people conducted by Boston Consulting Group found that 76% of Americans believe gas prices will rise for the remainder of the year. Another 48% said it was possible for gas prices to hit $5.50 a gallon at some point. Michigan gas prices currently average $3.04 a gallon, AAA Michigan reports.
The survey, which had a margin of error of plus or minus 3 percentage points, did point out that 50% of respondents have scaled back spending due to high gas prices.
"Americans have become more like ... professional procurers who know how to develop spending strategies to adapt to the times, maintain living standards and save money," said Michael Silverstein, senior vice president with Boston Consulting Group.
Silverstein acknowledged that gas at $5.50 a gallon will "cause households with income below $50,000 extreme pain and they will be forced to significantly cut discretionary purchases."
Gasoline has become a greater portion of household spending over the years. In 2005, fuel costs averaged about $2,400 of household expenses, compared with $2,000 in 2004.
"Prices are going up every weekend, and it's affecting people who are coming up to the lake for their vacations," said Robbie Patterson, a 70-year-old retiree in Gladwin.
But even as dire predictions for escalating energy prices loom on the horizon, consumers appear to have adjusted to the increase in fuel costs.
"We've seen tremendous increases in gas prices but the economy has absorbed it all," said Dana Johnson, chief economist with Comerica Bank. "If prices approach $4 a gallon a year from now it will strain the economy, but I don't think it will have a dramatic effect."
Alejandro Bodipo-Memba - Detroit Free Press - August 7, 2006
http://www.cleanmpg.com/photos/data/501/Chevrolet_Silverado_Towing_Race_Boat.jpg
Change in lifestyle unlikely - Chevrolet Silverado w/ Race Boat in tow.
Most Americans believe gas prices will keep rising over the next few months, but a report suggests that most folks remain confident that they will be able to maintain their lifestyles even if prices go beyond $4 a gallon.
A July telephone survey of more than 1,000 people conducted by Boston Consulting Group found that 76% of Americans believe gas prices will rise for the remainder of the year. Another 48% said it was possible for gas prices to hit $5.50 a gallon at some point. Michigan gas prices currently average $3.04 a gallon, AAA Michigan reports.
The survey, which had a margin of error of plus or minus 3 percentage points, did point out that 50% of respondents have scaled back spending due to high gas prices.
"Americans have become more like ... professional procurers who know how to develop spending strategies to adapt to the times, maintain living standards and save money," said Michael Silverstein, senior vice president with Boston Consulting Group.
Silverstein acknowledged that gas at $5.50 a gallon will "cause households with income below $50,000 extreme pain and they will be forced to significantly cut discretionary purchases."
Gasoline has become a greater portion of household spending over the years. In 2005, fuel costs averaged about $2,400 of household expenses, compared with $2,000 in 2004.
"Prices are going up every weekend, and it's affecting people who are coming up to the lake for their vacations," said Robbie Patterson, a 70-year-old retiree in Gladwin.
But even as dire predictions for escalating energy prices loom on the horizon, consumers appear to have adjusted to the increase in fuel costs.
"We've seen tremendous increases in gas prices but the economy has absorbed it all," said Dana Johnson, chief economist with Comerica Bank. "If prices approach $4 a gallon a year from now it will strain the economy, but I don't think it will have a dramatic effect."