Nearly two in five Americans (39%) say that gas prices are lower than they were this time last month, but there are sharp regional variations. Two in five drivers in the Northeast (43%) and Midwest (44%) reported lower prices, more than double the percentage reporting lower prices in the West (21%). Nationwide, the median reported gas price is $2.64, a 15-cent drop from last month’s median.

The decrease in gas prices has led to increased economic optimism. Just about half of consumers (49%) are optimistic about the economy, a 2-point increase from last month. More than three in four consumers (77%) say that gas prices affect their feelings about the economy.

A combination of vacations and lower gas prices will lead many Americans to step up their driving in August. One in three (34%) say they will drive more over the coming 30 days, while only 8% say they will drive less.

Many consumers think gas prices will continue to fall, with one in four consumers (25%) expecting gas prices to decrease over the next 30 days (up from just 10% who thought so last month). However, most consumers are skeptical that prices will eventually drop below $2 a gallon. Only one in five (20%) think that gas prices are likely to fall under $2 per gallon in the next few months. A majority of US fuel consumers (51%) say sub-$2 gas is “very unlikely,” including 72% of fuel consumers in the West.

If gas prices were to fall below the $2 per gallon threshold, however, consumers say that it would have a very significant impact on their driving and spending behavior. One in three drivers (32%) say that $2 per gallon gasoline would have a “great impact” on their personal financial situation, including 43% of consumers from households with incomes under $35,000 per year. Two in five consumers (40%) say that they would likely spend more on items other than gas if gas prices fell below $2 per gallon. A similar percentage (41%) say they would drive more frequently if gas prices fell below $2 per gallon.