It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
WASHINGTON/NEW YORK (Reuters) - Oil's relentless price rise has pushed U.S. drivers off the road, curbed consumers' appetite for expensive goods, forced airlines into their deepest cuts in years and threatened car makers with a flood of red ink.
It all points to a dramatic shift in the U.S. economy as oil's surge above $130 per barrel forces already cash-strapped households and companies to rethink business as usual, and the changes are likely to be lasting, even if energy prices retreat.
"The weakness in the United States economy in housing, that we have read about for over a year, with the mortgage crisis and credit crunch, was one blow. But oil is another blow, and it's probably one blow too many," Dow Chemical (DOW.N: Quote, Profile, Research) Chief Executive Andrew Liveris told Reuters.
When consumers curb spending, companies retrench, manufacturing falters, and employment dips. That is precisely what is happening now, and it points to a dangerous slowdown in the U.S. economy already grappling with the worst housing slide since the Great Depression.
"When gas prices hit $4 a gallon, you're going to see America come to a screeching halt because for two weeks, consumers aren't going to shop for anything except groceries," said Britt Beemer, head of America's Research Group, which surveys consumers on spending behaviour.
"Consumers are trying to figure out how they're going to manage the family budget when it costs $70, $80, $90 to fill up the tank of gas," he said.
Originally posted by stumason
We're already paying GB£4.73 (US$9.36)/Gallon for Diesel and GB£4.31 (US$8.53) for premium unleaded.