-- About three in every five US consumers plan to cut discretionary spending as a result of high gasoline prices, with a majority considering a pullback in outlays on travel and entertainment, according to an Oppenheimer survey.
The brokerage said of the 1,000 household decision makers polled, it focused on 880 respondents who drive either a hybrid or gas car.
The survey sought to gauge potential impacts of elevated gas prices on consumer behavior and determine their possible actions if fuel costs remain elevated.
Gasoline prices in the US are tracking above $4 per gallon, compared with a recent low of $2.80, Oppenheimer analysts Brian Nagel and Andrew Chasanoff said in a Friday note. The surge follows higher crude oil prices amid supply disruptions and production shut-ins caused by the Middle East conflict.
"Nearly 60% of participants in our survey indicate plans to actively pull back on discretionary spending as a result of elevated gas prices, of which 74% plan to reduce monthly discretionary spending by upwards of $400," Nagel and Chasanoff wrote.
The survey showed 62% of the people planning to curtail spending are leaning toward focusing first on travel and entertainment such as sporting events and concerts, Oppenheimer said.
The survey showed that apparel and home-related spending could be additional areas of saving for consumers.
US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday.
"As gas prices remain elevated, at least nearer-term, we tend to foresee more losers than winners, and few 'safehavens'," Nagel and Chasanoff said. "Those most at risk include athleisure, consumer electronics, and mid-tier-focused home-related chains."