Expensive gasoline = consumer belt-tightening

New survey from industry group indicates more consumers are feeling the gas price pinch; summer spending could suffer.

NEW YORK (CNNMoney.com) – As higher gas prices eat into consumers’ shopping budgets, more Americans say they could be forced to cope with the pain at the pump by cutting back on eating out, driving less often and holding off on purchases on big-ticket items like cars and TVs, according to a new industry survey Thursday.

According to the 2006 “Gas Prices Consumer Intentions and Actions Survey” from the National Retail Federation (NRF), 76 percent of consumers believe fluctuating gas prices have impacted their spending habits, up from 67.2 percent last year and 57 percent in 2004.

“Higher prices at the pump act as a tax on disposable income. As prices continue to rise, it is inevitable that consumer spending will be affected,” NRF president and CEO, Tracy Mullin, said in a statement.

How do consumers plan to adjust their budget to account for the gas price hikes? About 45 percent of those polled said they will simply drive less. Additionally, 37.2 percent said they plan to decrease vacation and/or travel, while 36.2 percent will cut back on dining out.

CNN/Money