Consumers Warming Up to Record Low Energy Costs | Capital Group

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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.

The views expressed herein are those of the author and do not necessarily reflect the views of everyone at Capital Group Private Client Services. The thoughts expressed herein are current as of the publication date, are based upon sources believed to be reliable, are subject to change at any time and should not be construed as advice. There is no guarantee that any projection, forecast or opinion will be realized. Past results are no guarantee of future results. This material is provided for informational purposes only and does not take into account your particular investment objectives, financial situation or needs. You should discuss your individual circumstances with an Investment Counselor.