SOURCE: BIGresearch

May 24, 2007 08:30 ET

Rising Gas Prices Dampen Consumers' Purchase Intentions of Durable Goods

Fewer Plan on Buying Cars, Furniture, Appliances and Major Home Improvement in Latest BIGresearch Survey

COLUMBUS, OH -- (MARKET WIRE) -- May 24, 2007 -- What happens when rising gas prices surpass consumer expectations? You get a decline in consumer confidence, an increase in the number of consumers who feel worse off than a year ago and a decline in the number of consumers who plan on buying consumer goods. All this is from BIGresearch's May Consumer Intentions & Actions Survey (CIA) of 8,353 consumers.

"Gas price increases have entered unchartered territory as consumers anticipated prices to reach $3.32 a gallon by Father's Day. With prices for mid grade and premium gas topping $3.41 and $3.54 a gallon and $3.22 for regular according to AAA, consumers underestimated how high gas prices would go and are making changes to their purchase behaviors to cope," said Gary Drenik, President & CEO of BIGresearch. "It's tough for customers to think about making big ticket purchases and long-term debt obligations when daily budgets are being stretched to their limits with no end in sight," said Drenik.

Purchase intentions in May for autos, furniture, appliances and major home improvement were all down from April.

People Planning on Buying (Next 6 Months)

                           April        May
                           -----       -----
Car / Truck                11.6%       10.9%
Furniture                   9.9%        8.6%
Home Appliances             7.4%        5.9%
Major Home Improvements    10.5%        9.5%
To view complete chart, click the following link: www.bigresearch.com/bigciamaytrends-pi.pdf

"Regarding your personal financial situation, compared to this time last year, are you..."

Better Off   22.8%
Same         43.9%
Worse Off    33.3%
For additional information by Census Regions and other BIGresearch samples, go to: http://www.bigresearch.com and click on Complimentary Top Line Findings.

About BIGresearch

BIGresearch is a market intelligence firm providing analysis of consumer behavior in areas of retail, financial services, automotive, and media. They conduct the Consumer Intentions & Actions (CIA) Survey which monitors the pulse of more than 7,000 consumers each month. The CIA delivers current, demand-based information on where the retail consumer is shopping and their changing behavior. The data provides intelligence on where the retail consumer is going, their intentions and actions.

BIGresearch's methodology provides the most accurate consumer information in the industry with a margin of error of +/- 1 percent.

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