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Oil Prices Put the Brakes on Spending
High oil prices are adversely affecting Asian consumers' spending power, according to a new survey from Synovate. Similarly, an InsightExpress survey finds that US consumers are cutting back on eating out due to rising gas and heating prices.
Synovate Motoresearch questioned more than 3,900 consumers across India, Indonesia, Korea, Thailand and the Philippines. It found that 87% of consumers across all markets are concerned about the rising cost of oil, and 88% say it is having a direct negative impact on their family budget. Decreased spending power is most apparent in India, Indonesia and the Philippines, where almost 93% agreed.
High oil prices are also causing concern about the state of the world's energy resources, with 74% of respondents worried that the world is running out of oil reserves. 54% say they believe that governments should subsidise the development of alternative fuels, even if it means they have to pay more taxes.
Jon O'Loughlin, Global Director of Motoresearch, says the reduction in family budgets was forcing a change in consumption habits. 'Sustained high oil prices are causing people to make conscious lifestyle changes, from switching off the lights to giving extra consideration to the type of car they are purchasing.'
In its study of 1,000 US adults, InsightExpress found that 41% of respondents agreed or strongly agreed that they will eat out less often this winter season due to rising gasoline and heating prices. Among frequent diners, 27% plan to eat out less often.
Lower-income families are more likely to change their behaviour, with 52% of adults with a household income under $45,000/year saying that they will eat out less often due to rising fuel prices.
John Kaminski, Director of InsightExpress Financial Services Practice, says the results demonstrate a 'general price consciousness trend that has been brought on by rising fuel expenses'.
The companies are online at www.insightexpress.com and www.synovate.com
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