Rising fuel prices are putting pressure on the US economy – internationally

Higher energy costs have mixed effects on the US economy. Some consumers consider higher prices, while others need to change habits or tighten their belts.

Here are some examples of how the picture will look for different fields:

– Truck drivers see austerity –

As he struggles with rising fuel prices, truck driver Lamar Buckwalter sees signs of consumer decline all around him.

Buckwalter, the son and grandson of truck drivers living in Pennsylvania, said: “People are starting to cut down on extra stuff.

When he last filled it, Buckwalter spent $ 5.79 a gallon on diesel, which was more than double the price a year ago, with lower employment rates rising as demand for trucking services declined.

– Hard times for taxi drivers –

The impact is also felt by the Rutz Alliance, a New York taxi driver whose pockets are empty every day.

“I put $ 25 in petrol every day,” says Alliance AFP. “I’m over 45 now.”

“We’ve trying to survive. I have no choice. Inflation is everywhere. Rent, food, not everything, but ‘take or leave’,” he says.

In March, the New York Taxi Drivers Association called the price increase an “emergency” and temporarily asked for a 75-percent surcharge. But, the authorities did not take any action.

– Slight impact on airlines –

According to Arcas, airlines are among the sectors directly affected by the rise in jet fuel prices, which have risen by almost 50% since mid-March.

Since fuel and labor are the two main sources of cost, such a situation would generally cause a major downturn for the industry.

The general rule in the industry is that you can experience a two – thirds increase in fuel prices in 3-6 months and a full increase in 6-12 months, ”says Savanthi Sid, a professional at Raymond James.

But airlines are benefiting from the “inclusive need” of customers who want to travel after two years controlled by the Govt-19 epidemic.

Air fares are up 38% from last year. Industry executives say they have little difficulty avoiding the effects of expensive fuels.

– Suppressed demand saves tourism –

Sass Deviant had to abandon his regular summer trip to Atlantic City due to gas prices.

“This is the fault of the big oil companies,” Deviant says, believing he has to work from home to save money on fuel.

However, even though clients like Devyant are cutting back on travel, travel experts are still looking forward to a busy summer.

“We see mixed news. Oil prices obviously have an effect,” said Aaron CF, an economist with the American Travel Association.

“However, this summer hotels, attractions, national parks and airports are expected to be full, so the demand is very high.”

– Electric vehicles, the most attractive –

Rising petrol prices have boosted consumer interest in electric vehicles. According to Cox Automotive, Internet visits for these cars have increased by 73% since January.

However, according to Cox, electric vehicle arrivals represent a relatively small percentage (5.7%) of the total. In addition, the shortage of semiconductors and other vital components is suffocating car dealers, with limited inventory.

In May, Toyota and Lexus sold 46,000 hybrid vehicles, down 17% from the same period last year amid a deficit.

Raymond James Fund

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