Are Higher Gas Prices Hurting the Economy?

May 09, 2011

A recent survey in nine Midwestern and Plains states suggests that the rising cost of fuel could be dampening economic recovery in the local economy of those states.

Are Higher Gas Prices Hurting the Economy?

 

According to a report released Monday, the Business Conditions Index for the Mid-America region dropped in April for a second straight month, to 57.7 last month from 61.4 in March. The survey of supply managers and executives and the report use a collection of indexes ranging from zero to 100. Organizers say any score above 50 suggests economic growth in the next three to six months, while a score below 50 suggests a contracting economy.

 

Rising fuel costs can cause suppliers to cut back on shipments and consumers to spend less on non-essential goods and services, stifling economic growth nationwide.  Has your fleet felt the sting of more expensive fuel yet? Leave us a comment below and let us know how your business is adjusting.  And as always, remember that you can ease the pain of rising prices with a fleet card from FleetCards USA.

 

Photo courtesy of Paulo Ordoveza and re-used under the Creative Commons license.