ALEXANDRIA, Va. -- Most consumers expect gasoline prices will continue to rise during June, a period in which gas prices tend to moderate or even fall after the completion of the annual spring transition to summer-blend fuel. Nearly three in five consumers (59%) expect gas prices will go up in the next 30 days, while 9% expect them to fall, according to survey results released by the National Association of Convenience Stores (NACS).
On average, consumers report that gas prices rose 16 cents last month to reach $2.75 per gallon. Despite these rising gas prices, consumer optimism about the overall economy is growing. A slight majority (52%) of consumers say they are “very” or “somewhat optimistic” about the economy, up four percentage points from the 48% who said so in May. Consumers ages 18 to 34 are feeling particularly hopeful, with nearly three in five (57%) saying they feel optimistic about the economy, including 20% who say they are “very optimistic.”
Nationally, gas prices remain almost a dollar per gallon cheaper than they were this time last year, leaving many consumers with extra money in their pockets. The U.S. Energy Information Administration (EIA) estimates that lower prices will save the average American family $675 in fuel costs in 2015.
Less than half (44%) of Americans say they are spending this extra money, with 38% spending it on day-to-day essentials and 6% spending it on special items they wouldn’t buy otherwise. Households making less than $35,000 per year are most likely to be spending the money on day-to-day essentials (47%, vs. 28% of those making more than $75,000 per year). In contrast, higher-earning consumers in households making more than $75,000 per year are more likely to be saving the money (39%, vs. 27% of lower-earning consumers).
Overall, one in three Americans (33%) are saving the extra money in their pocket from lower gas prices. Lower-earning savers are much more likely to put these savings toward an emergency fund (64%, vs. 31% of higher-earning savers). Meanwhile, higher-earning savers are much more likely to be saving the money for retirement (36%, vs. 8% of lower-earning savers).
One in five consumers (21%) are using the extra money to pay down debt. Among those, 71% are using it to pay down existing credit-card debt.
NACS conducts the monthly consumer sentiment survey to gauge how gas prices affect broader economic trends. Penn, Schoen & Berland Associates LLC conducted the survey for NACS of 1,105 gasoline consumers from June 3 to June 8.
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