About the only good economic news over the past week came from the gas pumps where prices began to fall and are expected to continue falling for at least a few weeks.
According to AAA, gas prices around Florida fell an average of four cents a gallon over the past week and are expected to fall further this week.
The major factor forcing prices lower was the sharp drop in crude oil prices, and the major factor pushing crude prices lower was dismal economic news, analysts said.
Although Congress decided to raise the nation’s debt ceiling, Standard & Poor’s reduced the nation’s credit rating. At the same time, the U.S. Commerce Department was reporting that consumer confidence had fallen to its lowest point in two months, and federal officials said consumer spending posted a decline for the first time in almost two years. Those reports were issued while economists were noting that the nation’s economic growth was lower than expected during the second quarter.
Analysts said those combined factors pushed crude oil prices to below $90 a barrel. They were down nearly $9 a barrel over the past week.
“Now that the nation's credit rating is reduced, we can expect oil prices to drop even further," said Jessica Brady, spokeswoman for AAA Auto Club South. "Retail gas prices have already started to fall and consumers will see further reductions at the pump throughout the week."
According to AAA, gas prices around Florida fell an average of four cents a gallon over the past week and are expected to fall further this week.
The major factor forcing prices lower was the sharp drop in crude oil prices, and the major factor pushing crude prices lower was dismal economic news, analysts said.
Analysts said those combined factors pushed crude oil prices to below $90 a barrel. They were down nearly $9 a barrel over the past week.
“Now that the nation's credit rating is reduced, we can expect oil prices to drop even further," said Jessica Brady, spokeswoman for AAA Auto Club South. "Retail gas prices have already started to fall and consumers will see further reductions at the pump throughout the week."
