Paul Davidson, USA TODAY
(USA Today)—Many businesses are boosting hiring and investments with the money they’re saving on fuel as slumping oil prices bolster a resurgent U.S. economy.
Airlines, freight haulers, repair services, farmers and manufacturers are among businesses that could save billions of dollars a year from tumbling fuel costs.
Goldman Sachs estimates that fuel cost savings invested by businesses and governments will boost economic growth by 0.1 to 0.2 percentage points over the next year to a projected 3%.
Airlines are perhaps the biggest winners. Jet fuel prices have fallen to $2.46 from $2.88 a gallon since June. Every penny decline in the price of jet fuel reduces the industry’s costs by about $190 million a year, according to the trade group Airlines for America. Airlines are not expected to pass the savings to passengers through lower fares.