Gasoline prices cut into spending

Consumers adjust budgets in Lawrence

Tammy Miles already has shed the Friday night trips to Pizza Hut, postponed her once-a-week clothes-shopping excursions to the mall and stepped up her coupon clipping for groceries.

Her only recent increase in spending: trading a 1995 Oldsmobile Cutlass for a 2003 Pontiac Grand Prix.

“I had to buy a new car,” said Miles, who commutes to her job at Douglas County Visiting Nurses Assn. from Topeka. “I needed it for the gas mileage.”

Miles’ expense-shaving moves reflect a rising number of adjustments Americans are making to account for high gasoline prices, according to a new survey.

Sixty-six percent of consumers say fluctuating gasoline prices have affected their spending habits, up from 57 percent a year ago, according to the survey conducted for the National Retail Federation.

The latest survey, conducted May 4-11, found that while consumers are enjoying a modest respite from the record-high prices recorded in April, their spending on gasoline continues to cut into purchases of food, clothing and big-ticket items such as cars and furniture.

Tammy Miles, Topeka, says high gasoline prices are cutting into her spending for clothes, dining out and groceries. Miles purchased gasoline Wednesday at Zarco 66, 1415 W. Sixth St.

According to the survey of 8,155 consumers:

¢ 31.2 percent have decreased vacation or travel plans.

¢ 25.2 percent dine out less frequently.

¢ 23.7 percent have cut the amount they spend on clothing.

¢ 17.3 percent spend less on groceries.

¢ 16.4 percent have delayed major purchases.

“While shoppers seem to be getting over the initial sticker shock, gas prices have taken a long-term toll on consumers, many of whom have had to adjust their spending to compensate for the increases,” said Tracy Mullin, the federation’s president and CEO, in a statement.

Airyn Banda, manager of Maurices, 739 Mass., said gasoline prices hadn’t cut into sales at her casual clothing shop.

At least not yet.

“People may be more concerned, but our sales haven’t gone down,” Banda said. “I don’t feel any concern with it yet. Gas prices have gone down a little bit, and we hope that helps.”

AAA reported Wednesday that the average price for a gallon of regular unleaded gasoline Wednesday in Lawrence was $1.978, down from $1.993 Tuesday and $2.168 a month ago. The average price reached its record peak April 11 at $2.291.

“I just hope it keeps going down,” said Jeff Randall, a Lawrence orthopedic surgeon who topped off his Ford F-250 Super Duty pickup Wednesday.

A little more than a third, or 35.1 percent, of consumers plan to curtail their travel this Memorial Day weekend, according to the federation’s survey. That’s down from 38.5 percent a year ago.

Miles will be among those staying home. The medical billing specialist and her two children – Je’Shon, 6, and Nevaeh, 3, – haven’t been to St. Louis to see the grandparents yet this year, and it may be awhile.

The money she used to spend on pizza, extra clothes and bonus groceries now goes into her tank, and even the improved mileage on her new car wouldn’t be enough to offset the multiple tanks it would take to get the family across Missouri and back.

Besides, she’s still not sure how much her mileage has improved.

“It’s supposed to get 30 miles per gallon on the highway, but I don’t know,” Miles said, as she spent $10 for 5.2 gallons of gasoline at Zarco 66, 1415 W. Sixth St. “I still haven’t filled it all the way up yet.”