Monday, July 2, 2007

US consumers pay highest energy bills in decades

High oil prices are dampening consumer confidence.

The summer heat is sweltering, so you turn up the air conditioning. The kids need a trip to the beach, but first you need to fill up the family car. And your freelance business requires that you spend a few hours on the computer tonight.

Kilowatts, gallons — they all add up. Energy is now sucking money out of Americans' bank accounts at a record level — hitting $612 billion at an annual rate in the month of April, the last month of data. Over the past two years, energy bills as a share of income have risen and are now at their highest point since 1987, but still below the levels of the 1970s and early 1980s. For low-income households, some economists estimate energy consumption as a percentage of income is closing in on 10 percent.

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