Rising fuel costs slowing recovery.
Position | Your Life - Brief Article |
Rapidly rising fuel costs might force American businesses to lay off employees or outsource work offshore. "The prices of oil and natural gas are rising significantly at a crucial point in the economic recovery. The trend threatens to take the wind out of the economy's sails by forcing business and consumers to rein in spending," warns John A. Challenger, chief executive officer of the international outplacement firm of Challenger, Gray & Christmas, Inc., Chicago.
"For now, many businesses are absorbing their higher costs, hoping for a reprieve. However, ongoing increases are likely to be met with job cuts, since companies are reluctant to try to pass along the burden to consumers through higher prices.
"Many businesses are suffering double exposure to high prices for both gasoline and natural gas," adds Challenger. "It is likely that they will be forced to seek relief through surcharges or ... deeper cost cuts, including the possibility of job cuts."
For example, according to the American Chemistry Council, chemical companies, which use natural gas to power their plants and as a raw material for their products...
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