$3 Gas Fuels Retail Worries

Prices at pump hit milestone again, first time since July
By Jim O'Neill,  Newser User
Posted Nov 6, 2007 8:02 AM CST
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(Newser) – Gasoline prices topped $3 a gallon for the first time since mid-July, prompting worries about a consumer pullback as the US heads into the holiday shopping season and cold weather increases energy demands, reports USA Today. It’s the first time gas prices, up 80 cents from a year ago and 24 cents in a month, have reached $3 in November.

Retailers worry gas prices could dampen holiday spending along with housing and credit market woes. "If it sticks, it's going to be more and more of a force," said analyst James Paulsen. Retailers project a 4% holiday sales growth, down from 4.6% last year. AAA said 23 states reported prices at or above $3 yesterday. The US average was $3.004.