The S&P GSCI Unleaded Gas Index has seen an 18% rise to date but a 25% percent increase over the past 12 months. This is considered a negative for consumer spending.
Investing Insights: Oil ETFs: The Top 10 Exchange Traded Funds for Your Oil Investing List.
In a statement by the S&P indicies division, it said of the gas rise:
“In a rapidly expanding U.S. economy, unleaded gas prices should be expected to rise due to increasing domestic demand pull forces but in a stagnant economy, higher unleaded gas prices are more of a consumer burden. Unless unleaded gas prices sustain a precipitous decline, little relief should be expected for cash strapped U.S. consumers.”
S&P’s broad commodity index has decreased 7% to date.