CNBC Survey: Americans Cut Spending Due to Higher Gas Prices and See No Relief in Sight

Why It Matters

Sustained high fuel prices threaten to dampen consumer demand across multiple service industries and could elevate household debt, shaping both corporate earnings and monetary‑policy considerations.

Key Takeaways

• 61% cut dining and entertainment spending due to gas prices.
• 52% reduce travel, reflecting broader discretionary cutbacks overall.
• 31% resort to credit cards to offset higher fuel costs.
• 53% expect high gas prices to persist six months or more.
• Democrats more likely than Republicans to see prolonged price pain.

Summary

A recent CNBC‑commissioned All‑America Economic Survey of 10,000 U.S. adults finds that rising gasoline prices are prompting a measurable pullback in household spending.

More than six in ten respondents say they are spending less on out‑of‑home entertainment, while over half are traveling less. Essential‑goods purchases have also slipped, and roughly one‑third are turning to credit cards to bridge the gap.

The survey highlights a partisan split on the expected duration of the pain: 73 % of Democrats anticipate high prices lasting longer than six months, compared with 72 % of Republicans who expect relief within that window. Additionally, 35 % of respondents think overall inflation will stay flat or fall, but a quarter foresee it rising above the current 3.3 % rate.

If gasoline costs remain elevated, discretionary cutbacks could weigh on the restaurant, travel and entertainment sectors, while increased credit‑card usage may raise household debt levels and pressure lenders. Policymakers and businesses will need to monitor fuel price trends as a leading indicator of broader consumer confidence.

Original Description

Americans are feeling the pinch of higher gas prices and are not expecting relief anytime soon, according to the CNBC All-America Economic Survey.

CNBC's Steve Liesman has the details.