Economic optimism among consumers fell five percentage points in February to 60%—the lowest level since September 2017.
Consumer optimism slumped in February based on market conditions and a rise in pump prices, according to the NACS Consumer Fuels Survey.
The turbulent stock market compounded with a nine-cent increase in gas prices lowered February consumer economic optimism by five percentage points to 60%—the lowest consumer economic optimism reported in the past six months. The previous low (54%) was in September 2017 when Hurricane Harvey shut down one third of the country’s refining capacity and gas prices surged 28 cents in a single week.
Nationwide, 66% of consumers noticed that gas prices increased over the past month (from $2.50 to $2.59 during the reporting period); this mirrors the surge also seen in September 2017 when 82% of drivers noticed that gas prices increased. Overall, 77% of consumers surveyed in the latest Consumer Fuels Survey said that gas prices impacted their feelings about the economy.
NACS has conducted monthly surveys related to economic issues and consumer sentiment since January 2013.
One in four drivers (24%) say they will drive more over the coming month, which is up five percentage points compared to one year ago (19%, February 2017). Younger consumers ages 18 to 34 are most likely to drive more in the coming month (39%).
Though consumers say they are likely to drive more over the coming month, they may not be spending more on typical household purchases (22% say they will spend less versus 19% of those who say they will spend more), or eating more meals outside the home (32% say they will dine out less versus 19% of those who say they will dine out more).
“Consumers are still very optimistic in general, but there are some early warning signs for retailers. The question on the minds of most c-store operators today is whether increased traffic will lead to increased sales inside the store,” said Jeff Lenard, NACS vice president of strategic industry initiatives.
The survey was conducted online by PSB (Penn Schoen Berland); 1,501 U.S. adults who purchase fuel for a vehicle such as a car, truck or van at least once per month were surveyed Feb. 5-8.
