The first day of fall brings not only great weather, but a season of great expectations as the state looks toward an improving economic outlook.

As the leaves change colors, tourists and tourism officials are hoping for a season of majestic beauty and ringing cash registers, with a projected 3 percent more visitors and a 6 percent increase in spending over last fall.

That means an estimated 7.7 million people will visit New Hampshire this fall and spend approximately $1.1 billion, according to Tai Freligh, spokesman for the state Division of Travel and Tourism Development.

"Checking out our spectacular foliage, enjoying the outdoors, visiting friends and attending some of our signature fall events are popular harvest-time activities," Freligh said.

The beginning of fall also comes at a time when gas prices are at the lowest level in nearly 10 months, according to NewHampshireGasPrices.com.

Yesterday, the average price in the state for a gallon of regular unleaded was $2.58, compared to the nationwide average of $2.72. Some of the lowest prices reported on the website were at stations on Crystal Avenue in Derry, where both Gibbs and Monster Gas were offering gas for $2.49 per gallon. The lowest average price was $2.45 in Seabrook, while the highest was $2.92 in Lincoln.

Gas prices have dropped about 10 cents a gallon in a little more than a month, according to NewHampshireGasPrices.com.

Cheap gas was the main reason Steve DeMattia, 22, of Derry filled up at Gibbs yesterday.

"I haven't seen it any lower than $2.49," he said. "It's the lowest I've seen."

Declining gas prices also boost tourism and the state's economy, Freligh said.

"Having low gas prices really helps," he said. "The weather has been great."

While gas prices have been falling, so has the state's unemployment rate. The state Economic and Labor Market Information Bureau reports unemployment fell 0.1 percent in August to 5.7 percent as 150 people returned to work. There were 4,430 more people with jobs than in August 2009, the bureau said.

"The trend is we're doing better than the rest of the nation," state economist Annette Nielson said. "We have seen quite a bit of improvement for the year."

Job growth is being seen in most sectors of the state's economy, she said.

Retailers also are seeing an improving economic outlook, said Nancy Kyle, president and CEO of the Retail Merchants Association of New Hampshire.

"I have heard from retailers that things are picking up a bit and they are cautiously optimistic," she said.

Will the warm weather continue?

Plenty of warm, dry weather this summer meant an early appearance of fall foliage in Southern New Hampshire, according to Fred Borman, a forestry educator with the University of New Hampshire Cooperative Extension.

Even when temperatures were in the 90s only weeks ago, an occasional red, yellow or orange leaf could be seen as some trees began to change color as early as mid-August.

In the White Mountains, "the color is starting to look real nice already," Freligh said.

While some local residents interviewed yesterday hope the warm weather continues, they were also glad autumn has arrived.

"I like the fall, it's nice," said Janet Gray, 74, of Derry. "I like the weather the way it is today."

Some people are already thinking about Halloween. Mark Connolly, owner of Halloween Express in Salem, said the newly opened store has seen a flood of customers looking for that perfect costume, including 300 who bought items on Saturday.

"The smart customers are coming now before they have to elbow their way to the register," he said.

But while warm summer weather is in the immediate forecast, with the National Weather Service predicting sun and temperatures near 80 tomorrow and close to 90 on Friday, the Old Farmer's Almanac is less optimistic when it comes to the long-range forecast.

The recently released 2011 almanac, published in New Hampshire, calls for a colder-than-usual winter, but with less snow.

"It'll be cold. There will be no mistaking winter," editor Janice Stillman said.

 By Doug Ireland This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   Wed Sep 22, 2010, 01:41 AM EDT

- Material from The Associated Press was used this report.

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