CStore Decisions

  • Home
  • Today on CSD
  • Categories
    • CBD
    • Foodservice
    • Fuel & Gas
    • Health & Beauty
    • Independent Operators
    • Operations & Marketing
    • Technology
  • CStore Playbooks
    • CBD Playbook
    • Foodservice Playbook
    • Technology Playbook
    • Alcoholic Beverage Playbook
    • Tobacco Playbook
  • Products
    • Hot New Products Contest
    • Beverages & Cold Vault
    • Candy, Gum & Mints
    • Snacks
    • Tobacco
  • Resources
    • Digital Issues
    • Research & Downloads
    • Podcasts/How To Series
    • On Location
    • FAQ
    • 2022 Top 111 Chains
    • Leaders in Convenience
    • Rack Prices
    • Sponsored Content
    • Videos
    • Webinars / Digital Events
    • White Papers
  • Events
    • 2021 Chain of the Year
    • Convenience Directions
    • NAG Convenience Conference
    • Young Executive Organization
  • Join
    • National Advisory Group
    • Safe Shop Assured
    • Young Executive Organization

Falling Fuel Prices Increase Consumer Optimism

By CSD Staff | July 12, 2016

Share

July 2016 chart [672158]Younger consumers are more optimistic about the economy than their older counterparts.

The latest consumer survey from the National Association of Convenience Stores (NACS) has revealed that consumer optimism last month reached its highest level since March, following a 12 cent drop in gas prices.

Overall consumer optimism about the U.S. economy increased three points to 47% in July, but there were significant demographic variations. Six in 10 younger consumers (60%) ages 18–34 say that they are optimistic, compared to only 37% of those ages 50 or older.

Gas prices remain much lower than they have been in recent summers. This month’s reported price of $2.26 per gallon is 53 cents lower than the reported price of $2.79 in July 2015. As gas prices have declined, U.S. fuel consumers are less likely to say that gas prices significantly affect their feelings about the economy. Just one in five (22%) of fuel consumers say gas prices have a “great impact” on their feelings about the economy, the lowest number since NACS began surveying in January 2013.

Not only are consumers less concerned about current prices, they also feel good about future price changes. Only four in 10 (41%) consumers expect gas prices to increase over the next 30 days, the lowest percentage since February. And they say that prices would have to reach an average of $4.71—more than double today’s prices—before they would consider alternatives to driving or significantly reduce the amount that they drive.

The boost in consumer optimism regarding the economy may not immediately translate into a boost for the economy. Only one in five consumers (20%) say they will drive more over the coming month and only one in six consumers (16%) say they will spend more money shopping at all retail locations this month. However, both percentages are in line with historical averages for the month.

Fuel efficiency may also play a role in optimism. Consumers say their vehicle’s average fuel efficiency increased to 25.2 miles per gallon, the highest level since NACS began conducting monthly consumer surveys in 2013. As a result, average miles per dollar—a calculation that examines gas prices related to vehicle fuel efficiency—increased to 11.2 miles per dollar.

“Monthly changes in gas prices clearly affect consumer sentiment. The question is how much any future price drops can push optimism higher at a time when consumers still have broader political concerns, especially as the national conventions loom,” said Jeff Lenard, NACS vice president of strategic industry initiatives.

NACS, which represents the convenience store industry that sells 80% of the gas in the U.S., conducts monthly consumer surveys to gauge how gas prices affect broader economic trends. The survey was conducted online by Penn Schoen Berland; 1,101 U.S. adults who purchase fuel for a vehicle such as a car, truck or van at least once per month were surveyed July 5–8, 2016.

Related Articles Read More >

bp Shares Plan to Decarbonize the Texas Gulf Coast
7-Eleven Expands Convenience Through Tech
Thorntons Opens New Store
Enmarket Teams Up With Veteran Carriers to Feed Truckers
Safe Shop Assured

CStore Decisions Newsletter

Sponsored Content

  • Create Some Positivity at the Pump: 3 Ways to Fuel Customer Experiences
  • How Minuteman Food Mart Ensures a Consistent Customer Experience Across 44 Stores
  • Three Challenges Disrupting C-Store Operations and How to Overcome Them
  • Why Wait? Converting to E15 is easy.
  • It’s time you profited from your checkout line

Get the Magazine

Subscribe Now!
Subscribe Now!

Manage Current Subscription
CStore Decisions
  • New CSD Print Subscription
  • Manage current print subscription
  • CBD Retail Trends
  • CStore Products
  • NAG Convenience Conference
  • Convenience Directions
  • Rack Prices
  • Subscribe to CSD’s E-Newsletter
  • About CStore Decisions
  • Advertise

Copyright © 2022 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search CStore Decisions

  • Home
  • Today on CSD
  • Categories
    • CBD
    • Foodservice
    • Fuel & Gas
    • Health & Beauty
    • Independent Operators
    • Operations & Marketing
    • Technology
  • CStore Playbooks
    • CBD Playbook
    • Foodservice Playbook
    • Technology Playbook
    • Alcoholic Beverage Playbook
    • Tobacco Playbook
  • Products
    • Hot New Products Contest
    • Beverages & Cold Vault
    • Candy, Gum & Mints
    • Snacks
    • Tobacco
  • Resources
    • Digital Issues
    • Research & Downloads
    • Podcasts/How To Series
    • On Location
    • FAQ
    • 2022 Top 111 Chains
    • Leaders in Convenience
    • Rack Prices
    • Sponsored Content
    • Videos
    • Webinars / Digital Events
    • White Papers
  • Events
    • 2021 Chain of the Year
    • Convenience Directions
    • NAG Convenience Conference
    • Young Executive Organization
  • Join
    • National Advisory Group
    • Safe Shop Assured
    • Young Executive Organization