The oil industry’s retrenchment in the face of lower oil prices has had a palpable effect on the economy, according to a Goldman Sachs report.

The firm says low oil prices have caused energy and oilfield services companies to spend a lot less on drilling new wells and buying new equipment, costing gross domestic product as much as half a percentage point in the first six months of the year. 

Meanwhile, cheap oil hasn’t boosted consumer spending. Economists say Americans have pocketed their savings at the gas pump instead of spending the windfall elsewhere.

“I think it’s possible that in the short-term, the costs have outweighed the benefits,” said Steven Kopits, managing director at Princeton Energy Advisors.

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