The recent decline of gas prices will not do much for economic indicators. Following a sustained period of high prices for fuel, as well as other vital goods, several economic indicators will see their growth offset this year.
One such indicator is the amount of travel in the US. One of the most anticipated holidays, the weekend for Independence Day, will not generate as much travel as in the previous years. Specifically, 39 million Americans will travel in June 30 to July 4 holiday time more than 50 miles, a drop of 2.5 percent from last year’s figures.
The estimate comes from AAA, which is projecting this decline based mostly on the gas prices, as the price per gallon is nearly one dollar higher than in 2010, said the director of Travel Services at AAA, Glen MacDonell. He added that high gas prices will also lead to a shift in Independence Day travel demographics, as the low-income households will be more severely affected than households with medium to high incomes.
Since fuel is a necessity, the sums spent on fuel are unlikely to change for day-to-day activities. However, in the case of households with low incomes, it is highly probable that leisure expenses will suffer some cuts, including fuel costs for Independence Day travel. According to AAA estimates, from households with incomes of up to 50,000 dollars only 33 percent will travel for Independence Day, down from last year’s 41 percent. Conversely, those from high-income households (100,000+ dollars annually) will travel more, the estimated number of Independence Day travelers going up to 35 percent, from 26 percent last year.