Utah consumer confidence at historic level

Utah consumer confidence at historic level

(Jeffrey D. Allred, Deseret News)


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SALT LAKE CITY — A new survey shows Utah's economic outlook is at historic levels, and consumers are confident that it will stay that way for the foreseeable future.

The Zions Bank Utah Consumer Attitude Index jumped 8.8 points this month to register at an all-time high of 123.5 — 8.1 points higher than its level this time last year. Nationally, the Consumer Confidence Index climbed 9.5 points from February to March to register at 125 — the highest level in 16 years.

The rise in the Utah overall index was attributed primarily to great expectations for the economy over the next six months, explained Chad Berbert, principal at Cicero Group, which compiled the survey data. The Present Situation Index, the sub-index of the overall index that measures consumer sentiment about current economic conditions, rose 5.6 points over last last month, he said.

"Utahns perceive that jobs are growing, they perceive they have economic opportunity and they perceive their incomes are growing," Berbert said. "All of those things point to a positive outlook and optimism."

He noted that the Beehive State's 3.1 percent unemployment rate is among the lowest in the nation and well below the U.S. jobless rate of 4.7 percent. The survey showed that expectations for the next six months jumped 10.9 points in March due to a more positive outlook on future income potential and employment conditions, he said.

"People are looking around and realize that we have jobs and as those (employment) numbers continue to grow, we're feeling good about our current economic situation and even better about what it's going to look like in the future," Berbert added.

The Utah Consumer Attitude Index is based on a representative sample of 500 Utah households. The monthly survey is conducted by the Cicero Group and has a confidence interval of plus or minus 4.4 percent at a 95 percent confidence level. The data collected are compared with both local and U.S. data from previous months to identify key consumer sentiment trends in the state.

Zions Bank (Photo: Aaron Thorup, Zions Bank)
Zions Bank (Photo: Aaron Thorup, Zions Bank)

The March survey stated that Utah consumers are optimistic about various areas of the economy, with 51 percent of consumers thinking the U.S. economy will improve over the next 12 months; 69 percent of Utahns feeling interest rates will rise in the next year and the same percentage expecting the price of gasoline to increase in the next 12 months.

While consumers are bullish about the economy, they are bearish about the job Congress is doing from a national perspective with just 26 percent of Utah respondents feeling the federal government is doing a good job taking steps to improve the overall economy. Meanwhile, 44 percent of Utahns think the state government is doing a good job, down from 48 percent last month.

Overall, consumer sentiment regarding the local economy is at it highest level ever, which bodes well for months ahead, said Zions Bank economic adviser Randy Shumway.

“This month marks the first month in a long time that expectations for the future have mirrored sentiment about the current situation,” he said. “High expectations propel the economy and give Utahns even more reasons to get out and invest in their next project.”

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