Gas prices slow El Paso retail sales, consumer spending
Record-high gasoline prices are putting a damper on consumer spending, a leading national retail organization reported Tuesday.
El Paso retailers are also saying that they’re starting to feel the pinch after seeming to be immune to economic pressures for much of the year.
The International Council of Shopping Centers reported that chain-store sales for the week ended May 17 were down 0.4 percent compared with the previous week, but were up 1.6 percent compared with the same period in 2007.
Ever-rising gasoline prices have become an “increasing drag” on consumer spending and retail sales, and have created a “tough and difficult retail environment,” said Michael Niemira, chief economist for the shopping-center council.
“That’s the major economic headwind right now,” Niemira said.
According to a survey commissioned by Niemira’s group, 67 percent of consumers say high gas prices are forcing them to cut back their spending considerably or modestly. That is a record-high percentage since the shopping-center council began tracking the impact of gas prices on retail sales about four years ago, Niemira said.
Niemira expects retailers to face a “sluggish environment” for most of the rest of the year.
