Last updated on December 15th, 2016 at 11:39 am
The continued economic optimism that is driving the stock market to new highs may have the same effect on holiday shopping and travel. That’s according to a national consumer survey released this week by the National Association of Convenience Stores (NACS).
Sixty percent of U.S. fuel consumers report feeling optimistic about the economy, a 1-point increase over the prior month. Sixty-four percent of respondents in the categories of younger consumers age 18-34 in the South report the highest levels of optimism.
Americans also say that they are more likely to go out and shop than in previous holiday seasons. One in three (33 percent) say that they will be spending more money this month on non-fuel purchases, higher than December 2015 (27 percent) and December 2014 (24 percent). More than two in five younger consumers age 18-34 (42 percent) say that they will spend more this month.
Americans also intend to drive more in December: Twenty-seven percent, compared to only 22 percent last December who said they would drive more.
Low gas prices are a major factor driving consumer optimism. Three in four drivers (78 percent) say that gas prices impact their feelings about the economy, including 84 percent of consumers age 18-34. Nationally, gas prices peaked for the year in June at $2.38 per gallon. Though consumer optimism remains strong, there is some concern about gas prices rising in the future. More than one in three (38 percent) consumers say that gas prices increased over the past month and a majority of fuel consumers (52 percent) believe that gas prices in 30 days will be higher than they are today. Nationwide, gas prices rose from $2.15 to $2.19 per gallon over the past three weeks. While gas prices are 19 cents per gallon higher than a year ago (December 2015: $2), they are significantly lower than they were in December 2014 ($2.70) and December 2013 ($3.29).
“Economic optimism is continuing into the holiday shopping and travel season,” said Jeff Lenard, NACS VP of strategic industry initiatives. “This continued optimism as we head into 2017 is good news for retailers across the country—and especially for convenience store retailers who will offer food and fuel for holiday shoppers and travelers.”
The survey was conducted online by Penn Schoen Berland; 1,124 U.S. adults who purchase fuel for a vehicle such as a car, truck or van at least once per month were surveyed Dec. 6-9.
