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Saturday, March 3, 2012

So far, consumer confidence resilient against gas prices

Observation:   According to the Conference Board’s report on consumer confidence release last week, people are feeling more secure about their financial situation in spite of higher fuel prices.  Click here to see the story as it appeared in USA Today.

Implications:   Consumer confidence is a great thing… and I think this report supports the idea that while prices might be rising—especially gas prices—nobody will be as “shocked” at the increase (at least not like we were during the 2008 energy price spike).  This time, I think it’s safe to say that most of us saw it coming.  Here’s hoping that resilience is strong in over the upcoming summer season, too.

In another interesting story—perhaps an opposing view—the New York Times published an article about the kind of conflict and crisis that could push gas to $5 per gallon or higher very quickly (click here to see that story).

No doubt:  The Fuel Economy remains a very critical component in the emerging recovery.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

1 comment:

  1. I recently ran a sales meeting on categories that might benefit from the gas price surge. The troops were very engaged and came up with all the categories. Just as consumers shouldn't be surprised, I wanted to make sure we are poised should we head north of $4 (or $5, yikes)

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