Overall consumer spending is not hurting as much as one might think, at least for now,
Scottsdale, Arizona (PRWEB) March 23, 2012
Gasoline prices in Arizona have been averaging $3.86 a gallon and many fear this could undercut local economic recovery. However, local economic and financial expert Heath Bray, Vice President and Senior Financial Advisor with WealthTrust-Arizona, states that the rise in gas prices is not currently derailing Arizona’s economic recovery as drastically as some might think.
“Rising gas prices hurt less when an economy is improving than when it’s slowing down,” explains Bray. “Arizona is in much better shape than this time last year, when a similar surge in fuel prices weighed on economic growth. Consumers were spending less on food, entertainment and everything else,” he added.
The average price of a gallon of regular here in Phoenix is now $3.87, the highest recorded price in March. That is up nearly four cents from a week ago, and more than 41 cents from a year ago at this time.
“Overall consumer spending is not hurting as much as one might think, at least for now,” says Bray. “Retail spending has been on the climb, even as gas prices rise. However, once gas hits its national record of $4.11 a gallon, that’s when we will really feel the pain at the pump.”