ALEXANDRIA, Va. -- More Americans today are optimistic about the economy than they have been in nearly four years and consequently, they intend to drive and spend more in the coming month, according to the results of a national consumer survey released by NACS.
Nearly three in five (59%) U.S. fuel consumers report feeling optimistic about the economy, a 13-point jump over the prior month, and the highest level of economic optimism since NACS began tracking this metric in 2013. This increase was noticeable across all demographics and regions and was a reversal from each of the past seven months when a majority of American fuel consumers have been pessimistic about the economy.
“Economic optimism likely surged thanks to a combination of factors: relief over the conclusion of the election, and a more certain political outlook, which in turns has helped the stock market,” said Jeff Lenard, vice president of strategic industry initiatives for NACS. “And there is no question that the elevated mood of the nation has been enhanced by the sustained period of lower gas prices.”
Three in four Americans (75%) say that gas prices impact their feelings about the economy, and U.S. gasoline consumers reported a median gas price of $2.15 per gallon, a 5-cent drop from October. Consumers also say their vehicle’s average fuel efficiency increased to 24 miles per gallon, which is about 1% higher that self-reported mileage a year ago.
With gas prices down and optimism up, nearly three in 10 (a record 28%) consumers say they will drive more this December, a sharp increase from the 20% this time last year. In addition, 30% of consumers say that they will increase their overall spending this coming month, another record for this time of year.
Some of this extra driving and spending will occur over the upcoming Thanksgiving holiday. More than one in three (37%) fuel consumers say they “always” or “sometimes” go shopping the day after Thanksgiving, commonly known as Black Friday.
Thinking about the overall economy, consumers say that lower gas prices will likely mean they will do more holiday shopping this year: 24% say they will do more vs. 6% who say they will do less. And consumers say others will be joining them at stores because of low gas prices: Forty-five percent predict Americans will shop more this holiday season vs. 7% who predict Americans will shop less.
“The positive mood of the country is welcome news for convenience stores, with the increased likelihood of more food and drink sales from happy consumers on the roads over the coming week and into the holiday season,” Lenard said.
NACS, which represents the convenience-store industry, conducts monthly consumer surveys to gauge how gas prices affect broader economic trends. Penn Schoen Berland conducted the survey online; 1,135 U.S. adults who purchase fuel for a vehicle such as a car, truck or van at least once per month were surveyed from Nov. 15-18.
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