Consumers Warming Up to Record Low Energy Costs
Personal Consumption on Energy Near All-Time Lows Just in Time for Holiday Shopping Season.
Energy costs have come down in recent years and now account for less than 4% of consumer spending. Driven by low oil prices and more energy-efficient automobiles and homes, the category is far from its 1980 peak, when it was more than 9% of household expenditures. While necessities such as housing and health care still make up the majority of consumers’ budgets, energy savings could propel discretionary spending and retail sales higher.