Washington, D.C. – 7/18/2014 - A proposal now being considered by the U.S. Environmental Protection Agency to cut the amount of corn ethanol required in gasoline would lower greenhouse gas emissions by 3 million metric tons, according to a new report released by the Environmental Working Group.
If the EPA reduces corn ethanol by 1.39 billion gallons as proposed, it would prevent as much greenhouse gas pollution as taking 580,000 cars off the road annually, EWG found.
The current mandate, known as the Renewable Fuel Standard, requires oil companies to increase so-called renewable fuels in gasoline every year, from 9 billion gallons in 2008 to 36 billion gallons in 2022. For the first time since this law took effect, the EPA has proposed to reduce the amount of corn-based ethanol used as fuel for the nation’s cars and trucks.
“The Obama administration has a real opportunity to scale back the corn ethanol mandate and make a significant contribution in the fight against climate change,” said Emily Cassidy, EWG research analyst and co-author of EWG’s new report, Ethanol’s Broken Promise. “As our research shows, corn-based ethanol is actually worse for the climate than regular gasoline.”
Click here to read the full report.
Blending corn ethanol into gasoline has significantly increased greenhouse gas emissions because higher demand for ethanol for fuel has encouraged farmers to plow up wetlands and grasslands to grow corn. This increased agricultural activity releases more soil carbon into the atmosphere. Corn requires intensive fertilizer, which breaks down to emit nitrous oxide, another greenhouse gas, according to EWG’s study.
EWG estimates that 85 million to 236 million metric tons of greenhouse gases were emitted from 2008 to 2011, when more than 23 million acres of grassland and wetlands were converted to grow crops. Researchers found that most studies that claim the corn ethanol mandate reduces emissions do not properly account for the resources needed to improve crop yields and significantly underestimate the emissions from conversion of land to corn production driven by the federal ethanol mandate.
Since President Obama took office in January of 2009, his administration has made substantial progress to combat climate change. New fuel economy standards and a 10-fold increase in solar energy production have helped reduce U.S. greenhouse gas pollution to the lowest level in almost 20 years.
“In the absence of any real effort by Congress to address climate change, President Obama has stepped up repeatedly, doing more than any previous President to lower greenhouse gas emissions,” Scott Faber, EWG senior vice president for government affairs, said. “If the administration stands strong against the ethanol lobby and implements EPA’s proposed ethanol rollback, it will be a huge victory for the environment.”
Source: environmental working group
MARK TWAIN: FATHER OF AMERICAN LITERATURE -- FACT FACTS
ABOVE: Samuel Clemens, aka Mark Twain, was cemented as a premier writer of late 19th century America with his works "The Adventures of Tom Sawyer" and "Adventures of Huckleberry Finn." Find out more about his life and writing in this video.
Showing posts with label fuel. Show all posts
Showing posts with label fuel. Show all posts
Group says ethanol blend would be nightmare
(EWG) 2/19/2013 - The Environmental Working Group recently welcomed the introduction of legislation to block the use of gasoline containing 15 percent corn ethanol by U.S. Sens. Roger Wicker (R-Miss.) and David Vitter (R-La.), calling it a good first step in addressing concerns about the broader use of higher ethanol blends.
Currently most gasoline contains no more than 10 percent corn ethanol, but the Environmental Protection Agency decided last year to permit the use of the higher blend, known as E15, in cars and trucks made since 2001.
“E15 is a consumer nightmare waiting to happen,” EWG Vice President of Government Affairs Scott Faber said. “If every major carmaker, AAA and the Coast Guard are all saying the same thing, it’s time for Congress to take notice.”
E15 has been found to cause engine damage in tests conducted by the U.S. Department of Energy and manufacturers of boats and cars. Chrysler, Toyota and other auto makers have that said that their warranties will not cover E15-related claims, and others warn that E15 does not meet the fuel requirements detailed in their owners’ manuals.
The American Automobile Association has called on EPA to suspend the sale of E15 due to the likelihood of confusion at the pump and costly vehicle damage. In July 2009, the U.S. Coast Guard told the EPA that it, too, opposed the introduction of E15, citing possible safety risks to recreational boaters.
Currently most gasoline contains no more than 10 percent corn ethanol, but the Environmental Protection Agency decided last year to permit the use of the higher blend, known as E15, in cars and trucks made since 2001.
“E15 is a consumer nightmare waiting to happen,” EWG Vice President of Government Affairs Scott Faber said. “If every major carmaker, AAA and the Coast Guard are all saying the same thing, it’s time for Congress to take notice.”
E15 has been found to cause engine damage in tests conducted by the U.S. Department of Energy and manufacturers of boats and cars. Chrysler, Toyota and other auto makers have that said that their warranties will not cover E15-related claims, and others warn that E15 does not meet the fuel requirements detailed in their owners’ manuals.
The American Automobile Association has called on EPA to suspend the sale of E15 due to the likelihood of confusion at the pump and costly vehicle damage. In July 2009, the U.S. Coast Guard told the EPA that it, too, opposed the introduction of E15, citing possible safety risks to recreational boaters.
Source: Environmental Working Group
Subjects
automobiles,
environment,
Ethanol,
fuel
Decision On Tossing Ethanol Mandate Applauded
(EWG) - Washington - 2/4/2013 - A U.S. Appeals Court decision to throw out the 2012 federal mandate requiring refiners to blend cellulosic ethanol into the domestic gasoline supply should be wake-up call to Congress that the nation’s biofuels policy is in sore need of reform, said Environmental Working Group Vice President for Government Affairs Scott Faber.
The U.S. Court of Appeals in Washington, D.C. sided on Friday with gasoline refiners who argued that requirements for using cellulosic ethanol under the Renewable Fuel Standard were based on unrealistic production forecasts by the Environmental Protection Agency.
The U.S. Court of Appeals in Washington, D.C. sided on Friday with gasoline refiners who argued that requirements for using cellulosic ethanol under the Renewable Fuel Standard were based on unrealistic production forecasts by the Environmental Protection Agency.
“The ethanol mandate has been a disaster for most farmers, consumers, taxpayers and the environment. The court's decision to strike down large parts of the mandate creates a rare opportunity to reform the mandate to help consumers and the environment and to pave the way for truly sustainable biofuels. Now is the time to reform the ethanol mandate to reduce the amount of food and feed being diverted to fuel and to create a level playing field for promising new fuels that don't pit our energy needs against our food and environmental needs," Faber said.
EPA Issues 2011 Fuel Economy Trends Report
WASHINGTON (EPA) - 3/15/2012 - The average fuel efficiency for new cars and light duty trucks has increased while the average carbon dioxide (CO2) emissions continue to decrease for the seventh consecutive year, according to the U.S. Environmental Protection Agency’s annual report, “Light-Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975 Through 2011.”
“Today’s report shows that we are making significant strides toward saving families money at the pump, reducing greenhouse gas emissions and cleaning up the air we breathe,” said Gina McCarthy, Assistant Administrator for EPA’s Office of Air and Radiation. “The historic steps taken by the Obama administration to improve fuel economy and reduce our dependence on foreign oil is accelerating this progress, will spur economic growth and create high-quality domestic jobs in cutting edge industries across America.”
For 2010, the last year for which EPA has final data from automakers, the average real world CO2 emissions from new vehicles were 394 grams per mile and the average fuel economy value was 22.6 miles per gallon (mpg). EPA projects an improvement in 2011, based on pre-model year sales estimates provided to EPA by automakers, to 391 grams of CO2 per mile and 22.8 mpg.
Fuel economy will continue to improve significantly as part of the Obama administration’s historic standards that will reduce greenhouse gas emissions and increase fuel economy to 54.5 miles per gallon by 2025. The U.S. Department of Transportation and EPA are implementing the first phase of these standards which already improved fuel economy in 2010 and will raise fuel efficiency to 35.5 mpg by 2016. These standards will save American families $1.7 trillion dollars in fuel costs, and by 2025 result in an average fuel savings of over $8,000 per vehicle. Additionally, these programs will dramatically cut the oil we consume, saving a total of 12 billion barrels of oil, and by 2025 reduce oil consumption by 2.2 million barrels a day – as much as half of the oil we import from OPEC every day.
The report also details the growth of more efficient technologies, such as six-speed transmissions, advanced fuel injection, and turbochargers that are making significant inroads into the mainstream market. EPA expects these and other new technologies to become even more popular in the next few years as automakers prepare to meet and fuel economy standards that will further drive up fuel efficiency and reduce emissions.
The CO2 emissions and fuel economy values above reflect EPA’s best estimates of real world CO2 emissions and fuel economy performance. They are consistent with the fuel economy estimates that EPA provides on new vehicle window stickers and in the Fuel Economy Guide. These real world fuel economy values are about 20 percent lower, on average, than those used for compliance with the corporate average fuel economy (CAFE) program.
The new report can be found at: http://www.epa.gov/otaq/fetrends.htm
“Today’s report shows that we are making significant strides toward saving families money at the pump, reducing greenhouse gas emissions and cleaning up the air we breathe,” said Gina McCarthy, Assistant Administrator for EPA’s Office of Air and Radiation. “The historic steps taken by the Obama administration to improve fuel economy and reduce our dependence on foreign oil is accelerating this progress, will spur economic growth and create high-quality domestic jobs in cutting edge industries across America.”
For 2010, the last year for which EPA has final data from automakers, the average real world CO2 emissions from new vehicles were 394 grams per mile and the average fuel economy value was 22.6 miles per gallon (mpg). EPA projects an improvement in 2011, based on pre-model year sales estimates provided to EPA by automakers, to 391 grams of CO2 per mile and 22.8 mpg.
Fuel economy will continue to improve significantly as part of the Obama administration’s historic standards that will reduce greenhouse gas emissions and increase fuel economy to 54.5 miles per gallon by 2025. The U.S. Department of Transportation and EPA are implementing the first phase of these standards which already improved fuel economy in 2010 and will raise fuel efficiency to 35.5 mpg by 2016. These standards will save American families $1.7 trillion dollars in fuel costs, and by 2025 result in an average fuel savings of over $8,000 per vehicle. Additionally, these programs will dramatically cut the oil we consume, saving a total of 12 billion barrels of oil, and by 2025 reduce oil consumption by 2.2 million barrels a day – as much as half of the oil we import from OPEC every day.
The report also details the growth of more efficient technologies, such as six-speed transmissions, advanced fuel injection, and turbochargers that are making significant inroads into the mainstream market. EPA expects these and other new technologies to become even more popular in the next few years as automakers prepare to meet and fuel economy standards that will further drive up fuel efficiency and reduce emissions.
The CO2 emissions and fuel economy values above reflect EPA’s best estimates of real world CO2 emissions and fuel economy performance. They are consistent with the fuel economy estimates that EPA provides on new vehicle window stickers and in the Fuel Economy Guide. These real world fuel economy values are about 20 percent lower, on average, than those used for compliance with the corporate average fuel economy (CAFE) program.
The new report can be found at: http://www.epa.gov/otaq/fetrends.htm
Subjects
environment,
EPA,
fuel
New ethanol blend could damage some vehicles
(EWG) - 2/19/2012 - The Environmental Protection Agency’s decision on February 17 to pave the way for the sale of gasoline blended with up to 15 percent ethanol is likely to prove a nightmare for car owners who improperly fuel their gas tanks.
Every major automaker has warned that millions of vehicle warranties will be voided if drivers fill up with E15. That means consumers will pull into gas stations that could have as many as four pumps with different kinds of fuel: one for E10 (up to 10 percent ethanol); one for E15; possibly one for E85 (between 70 and 85 percent ethanol); and maybe one for old-fashioned gasoline. The EPA intends to approve E15 only for vehicles manufactured after 2000. But some gas station pumps may not even have labels specifying which ethanol blend is which, because not every state requires them.
"It is going to be extremely confusing and dangerous for consumers," said Sheila Karpf, a legislative analyst at the Environmental Working Group. "If they make a mistake and put E15 into an older car or small engine, there's a good chance they'll ruin their engine and the manufacturer's warranty won't cover the damage."
To advance consumer safety, EWG analysts have created an Ethanol Blends Guide and Fact Sheet to help drivers choose the right fuel for their vehicles. The analysis provides more information about the new E15 label requirements.
Ethanol is more corrosive and burns hotter than gasoline, properties that could cause some engines to stall, misfire and overheat. Fuel with higher ethanol blends emits more nitrous oxide and formaldehyde than gasoline, lowers mileage and damages fuel tanks and pumps.
"Instead of approving a fuel that will pose health and safety hazards and damage engines, the U.S. should invest in energy efficiency measures and research and development for truly sustainable biofuels," said Karpf. "The high cost of replacing or repairing engines will be tacked onto corn ethanol's other costs -- including higher food prices, increased soil erosion and polluted water supplies."
To be safe, EWG recommends that consumers stick with E10 or regular unleaded gasoline if they can find it. If gas pumps are not labeled, consumers should ask a service station employee for more information about the fuel and the amount of ethanol it contains. Consumers should check with their engine manufacturers or mechanics to find out if their cars or small engines can safely run on E15 or other ethanol blends.
Source: Environmental Working Group
Every major automaker has warned that millions of vehicle warranties will be voided if drivers fill up with E15. That means consumers will pull into gas stations that could have as many as four pumps with different kinds of fuel: one for E10 (up to 10 percent ethanol); one for E15; possibly one for E85 (between 70 and 85 percent ethanol); and maybe one for old-fashioned gasoline. The EPA intends to approve E15 only for vehicles manufactured after 2000. But some gas station pumps may not even have labels specifying which ethanol blend is which, because not every state requires them.
"It is going to be extremely confusing and dangerous for consumers," said Sheila Karpf, a legislative analyst at the Environmental Working Group. "If they make a mistake and put E15 into an older car or small engine, there's a good chance they'll ruin their engine and the manufacturer's warranty won't cover the damage."
To advance consumer safety, EWG analysts have created an Ethanol Blends Guide and Fact Sheet to help drivers choose the right fuel for their vehicles. The analysis provides more information about the new E15 label requirements.
Ethanol is more corrosive and burns hotter than gasoline, properties that could cause some engines to stall, misfire and overheat. Fuel with higher ethanol blends emits more nitrous oxide and formaldehyde than gasoline, lowers mileage and damages fuel tanks and pumps.
"Instead of approving a fuel that will pose health and safety hazards and damage engines, the U.S. should invest in energy efficiency measures and research and development for truly sustainable biofuels," said Karpf. "The high cost of replacing or repairing engines will be tacked onto corn ethanol's other costs -- including higher food prices, increased soil erosion and polluted water supplies."
To be safe, EWG recommends that consumers stick with E10 or regular unleaded gasoline if they can find it. If gas pumps are not labeled, consumers should ask a service station employee for more information about the fuel and the amount of ethanol it contains. Consumers should check with their engine manufacturers or mechanics to find out if their cars or small engines can safely run on E15 or other ethanol blends.
Source: Environmental Working Group
Subjects
environment,
EPA,
fuel,
gas
California Gasoline Demand Flat, Diesel Declines
SACRAMENTO, Calif.- (BUSINESS WIRE) - 5/31/2011 - Jerome E. Horton, Chairman of the California State Board of Equalization (BOE), on May 27 released California gasoline and diesel consumption figures for February 2011. California gasoline consumption remained flat, while diesel fuel consumption in California declined. “As California gasoline consumption remained flat, higher gasoline prices have resulted in a greater percentage of household income going to gasoline,” said Horton. “Consumers will likely continue to look for ways to use less gasoline in response to the higher prices they are now facing compared to a year ago.”
California’s gasoline consumption remained flat in February 2011 with 1.131 billion gallons of gasoline, compared to 1.131 billion gallons in February 2010. In February 2011, the average price of gasoline at the pump in California was up 59 cents to $3.58 a gallon, a 20 percent increase, compared to California’s average price of $2.99 per gallon of gasoline in February 2010. The U.S. average price of gasoline in February 2011 was up 56 cents to $3.26 per gallon, a 21 percent increase, compared the U.S. average price of $2.70 per gallon of gasoline in February 2010.
In February 2011, California’s diesel consumption totaled 176.5 million gallons, which is 19.1 million gallons less than February 2010 when diesel consumption totaled 195.6 million gallons, a decrease of 9.8 percent. However, the February 2010 figures include an additional 11.3 million gallons of diesel fuel due to an audit assessment of prior monthly reporting periods. If the audit assessment of 11.3 million gallons in February 2010 are excluded from the calculations, diesel consumption still decreased by 4.2 percent in February 2011. California’s diesel fuel figures are net consumption that includes the State Board of Equalization’s audit assessments, refunds, amended and late tax returns and the California State Controller’s Office refunds.
The average price of diesel in California rose 86 cents to $3.80 per gallon in February 2011, a 29 percent increase compared to February 2010’s average price of $2.94 per gallon of diesel fuel in California. The U.S. average price for diesel rose 28 percent in February 2011 to $3.58 per gallon, up 79 cents compared to last year in February when the U.S. average price for diesel was $2.79.
The State Board of Equalization is able to monitor gallons through tax receipts paid by fuel distributors in California. Consumption figures for March 2011 are scheduled to be available at the end of June 2011. All monthly, quarterly, and annual figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm.
Taxable Gasoline Gallons: www.boe.ca.gov/sptaxprog/reports/MVF_10_Year_Report.pdf
Taxable Diesel Gallons: www.boe.ca.gov/sptaxprog/reports/Diesel_10_Year_Report.pdf
Elected in 2010, Chairman Jerome E. Horton is the Fourth District Member of the California State Board of Equalization, representing more than 8.5 million residents in Los Angeles County. He is also the Board of Equalization legislative committee chairman. He is the first to serve on the California State Board of Equalization with over 21 years of experience with the Board of Equalization. Horton previously served as an Assembly Member of the California State Assembly from 2000-2006.
The five-member California State Board of Equalization is a publicly elected tax board. The Board of Equalization collects more than $48 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.
California’s gasoline consumption remained flat in February 2011 with 1.131 billion gallons of gasoline, compared to 1.131 billion gallons in February 2010. In February 2011, the average price of gasoline at the pump in California was up 59 cents to $3.58 a gallon, a 20 percent increase, compared to California’s average price of $2.99 per gallon of gasoline in February 2010. The U.S. average price of gasoline in February 2011 was up 56 cents to $3.26 per gallon, a 21 percent increase, compared the U.S. average price of $2.70 per gallon of gasoline in February 2010.
In February 2011, California’s diesel consumption totaled 176.5 million gallons, which is 19.1 million gallons less than February 2010 when diesel consumption totaled 195.6 million gallons, a decrease of 9.8 percent. However, the February 2010 figures include an additional 11.3 million gallons of diesel fuel due to an audit assessment of prior monthly reporting periods. If the audit assessment of 11.3 million gallons in February 2010 are excluded from the calculations, diesel consumption still decreased by 4.2 percent in February 2011. California’s diesel fuel figures are net consumption that includes the State Board of Equalization’s audit assessments, refunds, amended and late tax returns and the California State Controller’s Office refunds.
The average price of diesel in California rose 86 cents to $3.80 per gallon in February 2011, a 29 percent increase compared to February 2010’s average price of $2.94 per gallon of diesel fuel in California. The U.S. average price for diesel rose 28 percent in February 2011 to $3.58 per gallon, up 79 cents compared to last year in February when the U.S. average price for diesel was $2.79.
The State Board of Equalization is able to monitor gallons through tax receipts paid by fuel distributors in California. Consumption figures for March 2011 are scheduled to be available at the end of June 2011. All monthly, quarterly, and annual figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm.
Taxable Gasoline Gallons: www.boe.ca.gov/sptaxprog/reports/MVF_10_Year_Report.pdf
Taxable Diesel Gallons: www.boe.ca.gov/sptaxprog/reports/Diesel_10_Year_Report.pdf
Elected in 2010, Chairman Jerome E. Horton is the Fourth District Member of the California State Board of Equalization, representing more than 8.5 million residents in Los Angeles County. He is also the Board of Equalization legislative committee chairman. He is the first to serve on the California State Board of Equalization with over 21 years of experience with the Board of Equalization. Horton previously served as an Assembly Member of the California State Assembly from 2000-2006.
The five-member California State Board of Equalization is a publicly elected tax board. The Board of Equalization collects more than $48 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.
Subjects
California,
fuel,
gas
High Gas Prices Destroy Consumer Confidence
NEW YORK - (BUSINESS WIRE) - 3/24/2011 - Consumer confidence in the U.S. fell last week to the lowest level since August of 2010 as more Americans became despondent over the economy.
The Bloomberg Consumer Comfort Index dropped to minus 48.9 in the period to March 20 from minus 48.5 the prior week. The measure of the current state of the economy slumped to a 15-month low.
The highest gasoline prices in more than two years weighed on families already dealing with rising grocery bills. The report showed confidence among households with annual incomes exceeding $50,000 fell to the lowest level since March 2010, representing a risk to consumer spending, the biggest part of the U.S. economy.
For full CCI results, see: http://www.bloomberg.com/cci
“Given the rise in fuel and food costs, households are clearly indicating frustration over the need to reduce discretionary spending to meet demand for basic necessities,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Even better-off households are feeling the pinch of rising prices, primarily at the pump.”
A report from the Labor Department March 24 showed the number of Americans applying for unemployment insurance fell last week. Orders for U.S. durable goods, meant to last at least three years, decreased in February, according to figures released by the Commerce Department.
Stocks rose on optimism European leaders will be able to find a solution to the region’s debt crisis. The Standard & Poor’s 500 Index increased 0.3 percent to 1,301.5 at 9:40 a.m. in New York.
The Bloomberg Comfort Index, with records dating back to December 1985, fell to a record low of minus 54 in November 2008, while the peak of 38 was reached in January 2000. Readings averaged minus 45.7 last year.
The latest results for the comfort index reflected worsening results for one of the three components.
A gauge of Americans’ views of the economy fell to minus 86 last week, the lowest level since December 2009, from minus 80.3 the prior week. The share of households with a positive view of the economy dropped to 7 percent from 10 percent.
The measure of personal finances improved to minus 5.5 last week from minus 7.7, the report showed. Forty-seven percent of those polled held positive views on their financial situation, up from 46 percent the previous week.
The buying-climate index rose to minus 55.1 from minus 57.4. Those saying it was a good time to buy needed items climbed to 23 percent from 21 percent.
Today’s report showed the strengthening labor market is doing little to lift consumers’ moods. The confidence index for Americans with full-time jobs fell to minus 38.4 last week, the lowest level since August, while it improved for those who were unemployed.
Jobless claims declined by 5,000 to 382,000 in the week ended March 19, Labor Department figures showed today, in line with the median forecast of economists surveyed by Bloomberg News. The total number of people receiving benefits dropped to the lowest level in almost three years.
Sentiment among women dropped last week to the lowest level since October 2009, the comfort report also showed.
Although elevated, little change in fuel costs last week may have prevented the comfort index from dropping even more.
The average price of regular gasoline at the pump was $3.55 a gallon on March 20, compared with $3.56 a week earlier, the highest since October 2008, according to AAA, the nation’s biggest motoring organization. The price jumped 39 cents in the three weeks ended March 13.
“Consumer confidence paused this week after a two-week rout, continuing to march in time with the price of a gallon of gasoline,” Gary Langer, president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement. At the same time, the index is “uncomfortably near its historic low” of minus 54, he said.
Gasoline prices and the comfort index have shown a strong inverse correlation since 2004, according to calculations by Bloomberg economist Brusuelas. Additionally, changes in the four-week average of claims for jobless benefits have been in sync with the comfort gauge about 72 percent of the time.
Americans are paying more for staple food items like cereal, and costs may climb further in the next few months.
“In recent months we have announced a variety of pricing actions across our businesses,” Ken Powell, chief executive officer of General Mills Inc., the maker of Cheerios, said yesterday on a conference call. “Food manufacturers are managing through a period of rising and volatile costs for food ingredients and energy.”
The Bloomberg Consumer Comfort Index is based on responses to telephone interviews with a random sample of 1,000 consumers aged 18 and over. Each week, 250 respondents are asked for their views on the economy, personal finances and buying climate; the percentage of negative responses is subtracted from the share of positive views and divided by three. The most recent reading is based on the average of responses over the previous four weeks.
The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative. The margin of error for the headline reading is 3 percentage points.
The responses are broken down by participants’ sex, age, income level, race, region of residence, political affiliation, marital and employment status.
The Bloomberg Consumer Comfort Index dropped to minus 48.9 in the period to March 20 from minus 48.5 the prior week. The measure of the current state of the economy slumped to a 15-month low.
The highest gasoline prices in more than two years weighed on families already dealing with rising grocery bills. The report showed confidence among households with annual incomes exceeding $50,000 fell to the lowest level since March 2010, representing a risk to consumer spending, the biggest part of the U.S. economy.
For full CCI results, see: http://www.bloomberg.com/cci
“Given the rise in fuel and food costs, households are clearly indicating frustration over the need to reduce discretionary spending to meet demand for basic necessities,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Even better-off households are feeling the pinch of rising prices, primarily at the pump.”
A report from the Labor Department March 24 showed the number of Americans applying for unemployment insurance fell last week. Orders for U.S. durable goods, meant to last at least three years, decreased in February, according to figures released by the Commerce Department.
Stocks rose on optimism European leaders will be able to find a solution to the region’s debt crisis. The Standard & Poor’s 500 Index increased 0.3 percent to 1,301.5 at 9:40 a.m. in New York.
The Bloomberg Comfort Index, with records dating back to December 1985, fell to a record low of minus 54 in November 2008, while the peak of 38 was reached in January 2000. Readings averaged minus 45.7 last year.
The latest results for the comfort index reflected worsening results for one of the three components.
A gauge of Americans’ views of the economy fell to minus 86 last week, the lowest level since December 2009, from minus 80.3 the prior week. The share of households with a positive view of the economy dropped to 7 percent from 10 percent.
The measure of personal finances improved to minus 5.5 last week from minus 7.7, the report showed. Forty-seven percent of those polled held positive views on their financial situation, up from 46 percent the previous week.
The buying-climate index rose to minus 55.1 from minus 57.4. Those saying it was a good time to buy needed items climbed to 23 percent from 21 percent.
Today’s report showed the strengthening labor market is doing little to lift consumers’ moods. The confidence index for Americans with full-time jobs fell to minus 38.4 last week, the lowest level since August, while it improved for those who were unemployed.
Jobless claims declined by 5,000 to 382,000 in the week ended March 19, Labor Department figures showed today, in line with the median forecast of economists surveyed by Bloomberg News. The total number of people receiving benefits dropped to the lowest level in almost three years.
Sentiment among women dropped last week to the lowest level since October 2009, the comfort report also showed.
Although elevated, little change in fuel costs last week may have prevented the comfort index from dropping even more.
The average price of regular gasoline at the pump was $3.55 a gallon on March 20, compared with $3.56 a week earlier, the highest since October 2008, according to AAA, the nation’s biggest motoring organization. The price jumped 39 cents in the three weeks ended March 13.
“Consumer confidence paused this week after a two-week rout, continuing to march in time with the price of a gallon of gasoline,” Gary Langer, president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement. At the same time, the index is “uncomfortably near its historic low” of minus 54, he said.
Gasoline prices and the comfort index have shown a strong inverse correlation since 2004, according to calculations by Bloomberg economist Brusuelas. Additionally, changes in the four-week average of claims for jobless benefits have been in sync with the comfort gauge about 72 percent of the time.
Americans are paying more for staple food items like cereal, and costs may climb further in the next few months.
“In recent months we have announced a variety of pricing actions across our businesses,” Ken Powell, chief executive officer of General Mills Inc., the maker of Cheerios, said yesterday on a conference call. “Food manufacturers are managing through a period of rising and volatile costs for food ingredients and energy.”
The Bloomberg Consumer Comfort Index is based on responses to telephone interviews with a random sample of 1,000 consumers aged 18 and over. Each week, 250 respondents are asked for their views on the economy, personal finances and buying climate; the percentage of negative responses is subtracted from the share of positive views and divided by three. The most recent reading is based on the average of responses over the previous four weeks.
The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative. The margin of error for the headline reading is 3 percentage points.
The responses are broken down by participants’ sex, age, income level, race, region of residence, political affiliation, marital and employment status.