Lower Gas Prices Push Consumer Optimism to New Highs

57% of consumers are feeling optimistic and one-third expect gas prices to keep falling.

January 14, 2015

ALEXANDRIA, Va. – For the first time in two years, a majority of Americans are optimistic about the economy, thanks to the continuing slide in gas prices. A NACS survey of gas consumers found that 57% of Americans are optimistic, including nearly two-thirds (65%) of those ages 18-34.

Consumers are obviously pleased with the continued falling price of gasoline, resulting in levels of consumer optimism that are the highest measured in the more than two years since NACS began measuring consumer sentiment. Almost nine in ten consumers (88%) say gas prices are lower today than they were last month, and they report that gas prices are 50 cents per gallon lower than they were 30 days ago. 

Looking forward, consumers are evenly split about where gas prices will go from here: Nearly one in three (31%) say gas prices will be lower next month, which also is the largest percentage recorded in the history of the NACS consumer fuels survey. However, an equal number (31%) expect gas prices to go up over the next month.

Additionally, there is an interesting regional split when it comes to expectations of price: Those in the Northeast are more likely to expect gas prices to fall (37% expect prices to go down vs. 21% who expect prices to go up), while those in the Midwest expect gas prices to go up (43% expect prices to go up versus 22% who expect prices to go down).

It remains to be seen if lower gas prices will result in more spending or driving. One in four consumers (24%) say that they will drive more this month, only slightly higher than the average of 20% who have said so over the past year. And only 16% of consumers say that they will spend more (excluding gas purchases) this month, while 25% say that they will spend less.

“While consumers certainly have more money in their pockets with lower gas prices, they may not be spending it — and they say that they are considerably less likely to consider changing their driving behavior to save money at the pump,” said Jeff Lenard, NACS vice president of strategic initiatives.




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