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http://uk.reuters.com/article/oilRpt...080523?sp=true
Payroll check to payroll check, hand to mouth...
By Emily Kaiser and Matt Daily - Analysis
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.
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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.
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.
...
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.
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