One in three U.S. consumers has already significantly reduced discretionary spending due to rising gas prices, according to the monthly RBC Consumer Outlook Index.
With the national average price at about $3.20 per gallon between Feb. 25-28 when the survey was conducted, another one in five said they would reduce spending if gas prices climb to $3.75 per gallon. Four in 10 placed their pain threshold at $4 per gallon or more.
Consumer confidence for March sank for a third straight month, with the RBC Consumer Outlook Index sliding to 42.5, down 2 points from February’s 44.5.
The March decline followed smaller decreases the two preceding months, as consumers were further affected by climbing fuel and food prices, instability in the Middle East and budget battles in Washington, D.C.
