Prices Are A Gas

With energy and gas prices skyrocketing, economists and retailers say many consumers are budgeting their expendable income.

“People are taking funds from one area and committing them to another – gasoline and utilities in particular,” said Gregory Miller, chief economist at Sun Trust Bank Inc.

Miller said he predicts growth in consumer spending will fall from a rate of about 2.5 percent to 1.5 percent during the second half of this year, bringing down the overall economic growth rate in the process.