Tuesday, October 31, 2006

Drop in Gas Sales Effects Some Retailers

During the month of September sales in gas dropped by 9.3%, even though there was a 20% decrease in price. I see this being a good thing in many ways because a decrease in sales means there probably are more people car pooling and not driving as much in order to save on gas. This is going to help the environment which i am glad about. However, many food and beverage stores and car dealerships saw a .4% drop in their sales. Car sales dropped 8.9% alone. Many other types of retailers saw a rise in sales. This is not what economist had expected. However, this is probably because people are saving money on gas and buying other things. These rise in retail sales and drop in gasoline sales has been pushing the price of gasoline down. However, the price may not keep falling for very long, and the economy will have to look at other places for inspiration for the economy to keep doing well.

1 comment:

David Allen said...

I agree this will help the economy. More people will stock up on gas because they know what the prices can get to. Also like the blog said more people will drive there own cars instead of car pool.