We’ve been telling you how low 2013 gas prices have provided a significant lift to the economy.
For instance, Deutsche Bank’s Joe LaVorgna has a rule of thumb which says that every penny of lower gas prices per gallon yields $US1 billion in economic stimulus.
In the past 12 months, prices have fallen about $US0.25 to a national average of $US3.19 (a level not seen since last December) — which means other expenditures could have climbed by $US25 billion.
Today, Oppenheimer’s John Stoltzfus reminds us this all bodes well for the economy in Q4.
“Average gasoline prices fell 2.05% over the last five trading sessions,” writes Stoltzfus. “Average prices are $US0.23 or 9.4% below their year average. Should average prices continue to fall, it could provide a boost to consumer confidence and even an increase in consumer spending heading into the holiday season.”