Americans, Hurt by Rising Gas Prices, Curb Spending, Poll Finds

June 26 (Bloomberg) — Most Americans say they are feeling the pain from rising gasoline prices and many are tightening their belts in response, a Bloomberg/Los Angeles Times survey shows.

That’s bad news for the economy. With consumers accounting for 70 percent of gross domestic product, any pullback in their spending would have an outsized impact on the economy. In a note to clients this week, Deutsche Bank AG economists estimate that U.S. annual growth may be cut by a half to a full percentage point if consumers spend less and save more.

“Consumers are facing so many different headwinds,” says Jonathan Basile, economist for Credit Suisse Holdings Inc. in New York. “It going to hold back growth for a while.”

Bloomberg