Nielsen: Half of U.S. consumers reduce spending to combat gas prices

A new study from The Nielsen Company finds 49% of U.S. consumers are reducing their spending to compensate for rising gas prices, up four points from June 2007. Consumers are also battling high gas prices by combining shopping trips and errands (70%), eating out less (41%) and staying home more often (39%).

The study said 2008 will likely be a challenging year for U.S. consumers and the economy as a whole as we grapple with growing inflation, credit card debt, declining house values - - as well as expectations for gasoline to hit 3.40 by spring.

Nielsen’s survey finds that record-high gas prices likely contributed to 2007’s less-than-stellar holiday sales season. 60% of consumers surveyed said they had less money to spend during the holidays due to increased gas prices, and 44% of consumers reported they planned on spending less money on holiday gifts in 2007 as compared to the year prior.

Nielsen finds that gas prices are impacting where consumers shop, with 27% of consumers reacting to gas prices by shopping more at supercenters, or megastores and big-box stores, where more items needed are in one store.

Increased fuel prices are resulting in more coupon clipping, with 25% of consumers using coupons to save money, up from 20% in June 2007. 23%  of consumers indicate they will buy less expensive grocery brands to deal with higher gas prices, signaling a possible boost for private label or store-brand products and lower-priced branded products.

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