U.S. consumers are cautious about spending their windfall from cheap gasoline and are saving more, according to a Reuters/Ipsos poll and official data, suggesting low oil prices are less of a boon for the U.S. economy than in the past.
Commerce Department data shows crude’s 70% drop since mid-2014 cut households’ annual spending on gasoline and other energy products by $115 billion, equivalent to roughly 0.5% of gross domestic product, Reuters reports.
At the same time, however, savings increased by $121 billion, and while the data gives no indication where the money has come from, the survey suggests the windfall accounted for a significant part of the sum.
The Reuters/Ipsos poll shows 75% of 3,068 Americans surveyed said the extra money helped them cover basic needs and the majority have not used their windfall to buy big ticket items. More than 40% of respondents said the savings had helped them pay down debts, according to the Jan. 15-27 online poll, which had a credibility interval of plus or minus 1.8 percentage points.
“It obviously hurts less when I go to the grocery store,” says Karen Joines, a recruiting firm product manager from Peachtree City, Georgia. Joines, who participated in the survey, estimates she saves $30 a week thanks to cheaper gasoline but has no plans for big purchases, in part because she worries low prices will not last.
