Consumer Purchases To Drop Due To High Prices
A recent study by Prosper Technologies predicts that several major retailers could see an increase in sales over the next three months, but this may not mean extra money for the stores. This is due to more consumers trying to save money with rising gasoline prices.
The ForecastIQ analysis showed more than 82 percent of consumers plan to spend more on gasoline because of the already high prices. In order to compensate for the money used for petroleum, more than 47 percent of consumers plan to shop less and nearly 44 percent are considering shopping closer to where they live.
Close to 25 percent of consumers are preparing to spend less on grocery items, while more than 35 percent are anticipating cutting clothing expenses. These are the highest figures the analysis has noted since its start in 2004.
With prices rising this summer, many consumers will likely cut back their purchases. In keeping with the money-saving trend, those who are concerned about credit card debt may attempt to spend less until gas prices and other costs start to tumble.