Survey: Declining prices at the pump may increase holiday sales

Alexandria, Va.—Declining gas prices may increase holiday spending this year—especially among men and those ages 18-34, according to a new national survey on consumer optimism conducted by the National Association of Convenience Stores (NACS).



For the first time in two years, a majority of men (51%) are optimistic about the economy and an even greater percentage of younger consumers (56%) are optimistic—and both groups say that they are more likely to increase their spending this holiday season.



Consumer confidence remains elevated as gas prices have dropped nearly 70 cents per gallon to under $3 per gallon over the past four months. For every one-cent decline in gas prices, Americans save an estimated $3.7 million per day at the pump.



Overall, consumer optimism about the economy held steady at 46%, making November the fourth out of five months that optimism was 46% or higher, according to the survey.



Likely as a result of lower prices at the pump, more Americans say they will spend more money this month than they did last month (excluding gas). One in five (21%) U.S. gas consumers say their spending will increase in November, compared with 15% in October. Nearly one in three (32%) of those ages 18-34 say that their spending will increase.



While nearly two thirds (65%) of Americans say that they will spend the same this holiday season, only one in seven (14%) consumers say that they intend to spend more this holiday season because of lower gas prices. The two groups most optimistic about the economy are also the most likely to increase their holiday spending because of lower gas prices: 27% of those ages 18-34 and 18% of men intend to increase their holiday shopping because of lower gas prices.