📝 Expect Gas Prices Trend to Support Consumer Expectations in December: Wells Fargo

The measures for both the present situation and for future expectations also declined slightly as recession fears begin to take hold.

Even with the decline in November, confidence is still 4.9 points higher than it was in July, following the June peak in gasoline prices. Falling prices at the pump can underpin confidence. The nationwide average price for a gallon of unleaded gasoline fell throughout November. That this decline did not result in a rise in confidence may be because most of the decline occurred in the second half of the month after survey responses had been submitted. If the trend decline in gas prices remains intact throughout December, that could be key to making spirits bright going into the critical holiday shopping season.

Even though fuel expenditures represent a small share of consumer spending, gas prices have a way of getting into consumers' heads. Not only would a sustained drop in fuel prices support confidence, it could also help quell fears about inflation.