High Gas Prices Affecting Consumer Spending Habits
FARMINGTON HILLS, Mich. (WWJ) – More money in your gas tank means less money in your wallet.
WWJ’s Ron Dewey reports that gas prices have changed how consumers are spending their money elsewhere. Dewey found that with gas prices still north of $3.00 a gallon, many metro Detroiters are learning to do with less of “everything.”
“I don’t drive as much anymore; $4.00 a gallon, can’t drive nowhere,” one man told Dewey.
Another said that even though he’s a smoker, he doesn’t buy his cigarettes much anymore, which has a trickle-down effect for the rest of the economy. Studies find that for every 10 percent increase in the price at the pump, consumer confidence drops by as much as one-and-a-half percent.
How high are gas prices?
AAA Michigan reports that, in Metro Detroit, the average price for self-serve regular rose 4.6 cents over the past week. The average price for a gallon of gas is $3.72 per gallon, which is 16.3 cents less than last year at this time.
AAA Michigan also says that over the Memorial Day holiday weekend, drivers will pay an average of just over $3.73 per gallon for gas. More than 1.1 million Michigan motorists are expected to travel over the upcoming holiday weekend.