Change of plans for July 4 - gas too pricey

Three in ten Americans say record prices will alter their holiday weekend plans, according to a new poll.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By David Goldman, CNNMoney.com staff writer

When it comes to investing my money, I most trust:
  • Myself
  • A family member
  • A certified financial planner
  • "Issue #1" host Ali Velshi

NEW YORK (CNNMoney.com) -- Many Americans will watch fireworks at home instead of hitting the road this July 4, according to a new poll released Wednesday, as record gasoline prices force people to make major changes in their daily lives.

According to a CNN/Opinion Research poll, 31% of Americans have canceled or shortened their planned holiday weekend vacation because of the recent increase in the price of gas.

"When consumers talk about their thinning wallets, high fuel expenses is the reason they would point to first," said Wachovia economist Tim Quinlan.

The average price of a gallon of gas rose to an all-time high above $4.09 a gallon Wednesday, according to a survey from motorist group AAA. Gas prices are now about 3% higher than last month and 38.5% higher than year-ago levels.

Of the more than 1,000 Americans surveyed from June 26 to 29, 72% said record gas prices have caused them to make changes in their daily lives, and 30% said those changes were major ones.

"If consumers are spending more on gas and other items that are inflated by high fuel prices, that leaves them less to spend on products in other areas," said Quinlan.

The problem is affecting Americans everywhere and of varying incomes. Though 78% of rural and 73% of suburban consumers said gas prices have had an effect on their routines, 61% of urban Americans are feeling the impact as well.

For those who earned more than $50,000 a year, 69% said they had made changes to their daily lives. That compares to 66% of those who earned less than $50,000. However, those with lower incomes were more likely to say that gas prices had forced them to make major changes to their routine.

The impact of high gas prices may help decide the vote in November.

In a section of the poll released Tuesday, 77% of those surveyed felt gas prices were "extremely" or "very" important to their vote. That makes fuel costs the third most important issue for American voters, behind the economy and the war in Iraq.

Experts say consumers may soon adjust to gas prices at the current level, but the economy will take longer to adjust.

"It's gotten to the point where if someone saw $3.50 a gallon, they'd be excited," said Quinlan. "The question is will consumers have enough left over when they get used to these prices."

Fuel costs have driven down consumer spending and confidence, helping to send the U.S. economy into a near standstill. In order to restore spending habits to what they were before the current economic slowdown, analysts say Americans will need to get paid more.

"Personal income growth will have to pick up for personal consumption to return to their previous levels if gas prices stay high," Quinlan said. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More


Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.