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Are Higher Gas Prices Hurting the Economy?

May 09, 2011

High-Gas-Price-Hurting-Economy

A recent survey in nine Midwestern and Plains states suggests that the rising cost of fuel could be dampening economic recovery in the local economy of those states.

According to a report released Monday, the Business Conditions Index for the Mid-America region dropped in April for a second straight month, to 57.7 last month from 61.4 in March. The survey of supply managers and executives and the report use a collection of indexes ranging from zero to 100. Organizers say any score above 50 suggests economic growth in the next three to six months, while a score below 50 suggests a contracting economy.

Rising fuel costs can cause suppliers to cut back on shipments and consumers to spend less on non-essential goods and services, stifling economic growth nationwide.  Has your fleet felt the sting of more expensive fuel yet? Leave us a comment below and let us know how your business is adjusting.  And as always, remember that you can ease the pain of rising prices with a fleet card from FleetCards USA.

Photo courtesy of Paulo Ordoveza and re-used under the Creative Commons license.