ALEXANDRIA, Va. -- While most consumers believe the great gas price freefall is over, they remain optimistic overall about the economy.
That's according to NACS' latest Consumer Fuels Survey, which each month measures the impact of gasoline prices on consumer sentiment. The February survey found that 58% of consumers believed gas prices would rise in the next 30 days, which is nearly twice the number who anticipated higher prices in the January survey.
More than one-half of consumers (54%), however, feel optimistic about the state of the economy. While this is a three-point drop from the January survey, it remains near a high point from January 2013. Men in particular are feeling optimistic about the economy, or 66% vs. 53% for women.
Nearly 80% of consumers said gas prices influence their economic sentiment, which affects their behavior. For example, the percentage of consumers who planned to drive more during the next 30 days slipped four points between the January and February surveys to 20%.; however, millennials--those between 18 and 34 years of age--were more likely than the average to plan more driving over the coming month, or 33%.
Consumers were less unified when it came to spending plans, with 16% expecting to spend more over the next 30 days, which is the same percentage as in the survey taken in January, when gasoline prices reached a low. Another 19% expected to spend less. Gas prices would need to climb to $3.50 per gallon before consumers said they would reduce their driving, which was the national average back in August 2014.
"Consumers remain upbeat about the economy, but there are some concerns for retailers over the coming months and gas prices will likely play a central role," said Jeff Lenard, vice president of strategic initiatives at NACS. "The recent increase in prices is clearly affecting consumer sentiment even though gas prices are now equal to what they were a month ago."
Penn, Schoen & Berland Associates LLC conducted the survey for the National Association of Convenience Stores with 1,102 gas consumers between February 6 and 8, 2015.
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