Don Leet, and economics professor at Fresno State University says, "If gas goes down 20 cents a gallon that's 20 billion dollars more that we'll have to put somewhere else. Very important and very helpful."
However, the decline in gas prices mirrors an overall decline in the economy. It doesn't necessarily mean consumers are going to run out and start buying SUV's again, especially because credit remains tight. "No, I don't look for a big buying spree here. I think consumers have finally learned their lesson." Leet said.
But, the lower prices might get folks traveling. The forecast is for gas prices to drop below three dollars a gallon by Thanksgiving. And thanks to lower fuel prices, airlines are expected to lower fares.
Tom Parsons of the travel site Bestfare.com says, "With fuel costs coming down, the airlines now have more wiggle room to tempt us and lure us to get on airplanes. You'll find a great deal for the holiday season."
The drop in diesel prices is making it cheaper to transport products by truck. But, because of the slow economy, it may take awhile for that to translate in lower prices for the products.
The owner of a Fresno trucking company, Jim Ganduglia says not to expect any dramatic price cuts.
"It's not gonna change prices drastically. Because everybody is in a position now where they can't move anything."
Declining energy prices are a bright spot, but they reflect the economic downturn. Other indicators, like rising unemployment and a big drop in consumer spending tend to offset the overall benefit. "For the economy as a whole, it looks like we're in a real slowdown." Leet says.
-----------------------------------------------------------------------------------------------
abc30 News Links:
Links to other news sections on our website.
- HomePage
- Top Headlines
- Fresno Local News
- State News
- National/World News
- Entertainment News
- Business News
- Politics News
- Sports News
- Health Watch
- Consumer Watch
- Mr. Food
Breaking News Alerts:
Click Here to Sign-Up for Breaking News E-Mail Alerts
Receive Breaking News alerts in your email inbox.
Click Here to Sign-Up for Text Message Alerts
Receive Breaking News alerts right on your cell phone.
-----------------------------------------------------------------------------------------------
