Gas price fluctuations need some managing

After approaching $3 for a gallon of gasoline last summer, seeing the price drop below $2 may seem like a welcome development. And it is. While little actual fanfare surrounds this pullback in fuel costs, most drivers likely appreciate a little relief on their pocketbooks.

As many are aware, however, the impact of the cost of a gallon of gas goes far beyond that of the average driver. Much – if not all – of our economy is based on the availability of gasoline, and when the price swings, we feel it in many ways.

On Friday, the University of Michigan released its monthly Consumer Sentiment Index, an economic indicator that measures consumer confidence. The university’s figures show the American spending public’s mood to be at a three-year high, and they partly attribute this peak to lower gas prices.

In essence, Americans who see they do not have to spend as much as they did less summer are not only more eager to spend the extra money they now have, they are also more eager to go out and shop in the first place.

Niles Daily Star (Michigan)